Issuu

First for the professional personal financial adviser

31 AUGUST 2026 R69.95 INCL VAT

www.moneymarketing.co.za

WHAT’S INSIDE YOUR AUGUST ISSUE: EMPLOYEE BENEFITS Employee benefits have moved far beyond medical aid and retirement funds. As expectations shift and costs climb, advisers who can design benefits strategies that genuinely attract and retain talent are in high demand. Cover story and Pg16-18

WOMEN IN FINANCE Women are reshaping the financial services industry as advisers, leaders and clients. For Women’s Month, we celebrate the women driving change and examine what the profession must do to attract and retain female talent. Pg9-15

COLLECTIVE INVESTMENTS While they remain the backbone of most client portfolios, the landscape around collective investments is shifting rapidly. We unpack the trends reshaping this industry and what they mean for advisers’ recommendations. Pg20-23

SHARI’AH INVESTING As a fast-growing investment segment, Shari’ah-compliant investing is an area advisers can’t afford to overlook. We explore how Islamic finance principles are being applied in South Africa and why demand is rising.

Image: www.shutterstock.com

Pg24-26

WANT MORE VALUE FROM YOUR INBOX?

Scan to subscribe to our weekly newsletters.

@MoneyMarketingSA

Employee benefits enter a new era By Sandy Welch

Editor MoneyMarketing

or decades, employee benefits have largely been shaped by employers. Companies selected retirement funds, medical schemes and group risk benefits, while employees simply joined the structures that came with their jobs. That model is beginning to change. According to Geoff Baars, Chairman and CEO of NMG Benefits, the future of employee benefits will increasingly be driven by employees themselves, reflecting a broader shift towards personal choice, financial ownership and individual responsibility. “The future of employee benefits is in the hands of the employee,” says Baars. “It’s their money, and they’re going to want to make the decisions about how it’s used.” The shift is significant in an industry that manages approximately R800bn in annual contributions, including retirement funds, medical schemes and group insurance. Around nine million South Africans belong to retirement funds, while approximately eight million participate in group insurance arrangements. “It’s a very important industry,” says Baars. “What happens to this money is important to literally millions of people.” While participation is relatively broad, adequate financial security remains elusive. “The breadth of coverage is relatively good,” he explains. “The challenge is the depth of that coverage. Are people saving enough for retirement, and are the benefits meeting their long-term needs?” The employment landscape has also transformed. Defined benefit pension funds have largely disappeared, replaced by defined contribution arrangements where employees build their own retirement savings. Yet benefit structures have not kept pace. Employees increasingly fund their own retirement and healthcare through cost-to-company packages, but often have little say over the products they must join. “We’re seeing a growing logical inconsistency,” says Baars. “Employees are effectively paying for these benefits themselves, yet in many cases they’re still being told which retirement fund or medical scheme they must belong to.” Healthcare illustrates this shift particularly well. Medical scheme membership has remained largely

“The future of employee benefits is in the hands of the employee” static despite population growth, as affordability continues to constrain access. While alternative healthcare products have emerged, millions of South Africans remain without adequate private healthcare cover. For Baars, this means employers must move away from one-size-fits-all benefits towards advice that reflects individual circumstances. “Our mission is to ensure that every member receives the best financial advice for their circumstances,” he says. “We know that’s not happening today for many people.” Healthcare benefits under pressure According to Karin Mitchelmore, Executive Head of Healthcare Consulting at NMG Benefits, private healthcare is experiencing what she describes as a “squeeze effect”, driven by rising medical costs and declining affordability. “The rising cost of clinical treatment, combined with a shrinking pool of younger, healthier members, is forcing medical schemes to increase contributions well above inflation,” she says. “We’ve seen annual increases of around 10%, far outstripping salary growth.” As employees come under greater financial pressure, many employers are moving away from compulsory medical scheme membership, giving staff more flexibility over how they spend their healthcare budgets. While that increases choice, it also changes the risk profile of medical schemes. “The average age of medical scheme beneficiaries has increased from around 32 in 2008 to 38 today,” says Mitchelmore. “Young, healthy employees are increasingly looking for cheaper alternatives, leaving medical schemes with an older and more expensive membership base.” Healthcare advice is also moving beyond the workplace. Baars notes that whereas most medical scheme members once joined through their employers, retail advice is becoming increasingly important. Continued on next page

THERE ARE

SO MANY WORLDS IN OUR WORLDS. And if you understand that, you understand retail. And property. And investment. All of which we do. As expert asset managers who think like retailers, we know that having a detailed grip on our shoppers’ and tenants’ worlds is what drives footfall, dwell time, loyalty, and spend. Tony wants the tech stuff. More than that, he wants the music. The headphones won’t be a random buy. They’ll be an investment. In identity and self-expression. We get all the Tonys out there. It’s how we create real – and lasting – growth. We know what makes your world go round.

Building communities, growing value.

AUGUST 2026 // NEWS & OPINION Continued from previous page

Image: Getty Images

“Advisers who already deal with investments, life insurance and short-term insurance are also expected to become experts in medical schemes. That’s asking a great deal,” he says. For Mitchelmore, this makes quality advice indispensable. “There isn’t a one-size-fitsall solution,” she says. “Every family has different healthcare needs, financial pressures and priorities.” She warns against selecting cover on price alone. “If people only compare monthly contributions, they can easily choose a plan that doesn’t meet their healthcare needs and ultimately costs them far more.” Instead, advisers should conduct thorough needs analyses that consider family circumstances, medical history and future healthcare requirements. Mitchelmore also believes complementary products such as gap cover remain underutilised. “Only around 30% of medical scheme members have gap cover, when it should probably be closer to 50%,” she says. “Many people assume that because their medical scheme pays at 100%, everything will be covered. Unfortunately, that’s often not the case.” Most importantly, she believes advisers should build ongoing relationships rather than simply recommend products. “Healthcare needs change throughout people’s lives,” she says. “Good advice means helping clients make the next decision as their circumstances change.” Retirement remains the biggest challenge While healthcare affordability is under pressure, retirement funding remains South Africa’s greatest longterm employee benefits challenge. “We’re asking people who are already struggling to meet today’s expenses to save for a future that feels decades away,” says Trevor Kingsley-Wilkins, Head of Retirement Fund Consulting at NMG Benefits. NMG’s analysis shows the average employee is on track to replace only 30% to 38% of pre-retirement income, well below the commonly accepted target of around 75%. “Only about 6% of South Africans are expected to retire with an income that broadly matches their pre-retirement lifestyle,” he says. The reasons are familiar: people start saving too late, contribute too little, and frequently cash out retirement savings when changing jobs. “Starting to save at 35 instead of 25 makes a massive difference,” he says.

“Employers need to shift from directing decisions to supporting better ones” “Meaningful retirement outcomes require meaningful contributions.” KingsleyWilkins believes the introduction of the two-pot retirement system marks one of the most significant reforms in decades. Before September 2024, between 70% and 90% of employees withdrew their full retirement savings whenever they changed jobs. “Every time someone cashed out, they effectively pressed the reset button on their retirement,” he says. “The compulsory preservation built into the two-pot system is one of the most positive developments we’ve seen.” Investment performance and fees also matter. “If your investments aren’t beating inflation, you’re effectively becoming poorer,” he says. At the same time, he cautions employers and trustees against focusing only on headline administration fees. “There is no such thing as a free lunch,” he says. “An additional 1% in annual fees can reduce retirement outcomes by between 20% and 40% over a working lifetime.” For Kingsley-Wilkins, improving retirement outcomes depends as much on education as product design. “When people understand the long-term impact of starting early, preserving savings and managing costs, they’re far more likely to make decisions that lead to financial security.” Engagement is the future Lettesha Pillay, Head of Sales and Business Development at NMG Benefits, says meaningful engagement starts by acknowledging employees’ immediate financial realities. “The crisis is real,” she says. “People are using longterm savings to meet short-term needs. We see it in two-pot withdrawals, rising gambling, and growing reliance on informal lenders.” Financial stress inevitably spills into the workplace, affecting productivity, decisionmaking and morale.

“It’s no longer a personal problem,” Pillay says. “It becomes an employer problem because it directly affects the workplace and ultimately the bottom line.” This leaves employers with a difficult balancing act. They want employees to save for the future, while many workers are focused on making it through the current month. Baars acknowledges the dilemma. “We don’t like telling people how to spend their money,” he says. “But we’re deeply concerned about the choices people are making.” He points to employees accepting lower gross salaries elsewhere simply because they are not required to contribute to retirement funds or medical schemes. Rather than becoming less involved, employers need to shift from directing decisions to supporting better ones. “The employer’s role doesn’t disappear, it changes,” says Siphamandla Buthelezi, COO and Executive Head of Platforms. “Instead of simply deciding on behalf of employees, employers should ensure people understand the consequences of the financial decisions they make.” The two-pot system has demonstrated that members are willing to engage digitally with their retirement savings, creating an opportunity for continuous education and personalised guidance. “The future of employee benefits is member-centred,” says Buthelezi. “For too long, the industry focused on employers and trustees. We now need to build systems with the member at the centre.” Mitchelmore believes healthcare is moving in the same direction, with employers increasingly seeking integrated solutions that combine healthcare, financial planning and wellbeing, while measuring whether interventions genuinely improve outcomes. Ultimately, NMG believes employee benefits are shifting away from isolated products towards holistic financial wellbeing. “Better financial literacy leads to better financial decisions,” says Pillay. “When employees understand their options and receive the right guidance, they’re more likely to make choices that are sustainable for themselves, their families and their future.”

www.moneymarketing.co.za // 3

NEWS & OPINION // AUGUST 2026

ED'S LETTER

his month’s issue of MoneyMarketing is celebrating the growing influence of women in financial services. Women are not only reshaping the profession as advisers, planners and wealth managers, but are also becoming increasingly confident investors, entrepreneurs and decision-makers. Their changing role is influencing how advice is delivered and how wealth is created and preserved across generations. Looking after people’s financial wellbeing extends beyond individual advice. Our employee benefits feature explores how employers can use retirement, risk and wellness solutions to build financially resilient workforces, while our behavioural finance article reminds us that successful investing is often less about choosing the perfect product and more about helping clients avoid costly emotional decisions. This issue also examines the growing appeal of Shari’ah investing, highlighting how ethical, values-based investing continues to gain traction among a broader range of investors seeking disciplined, longterm approaches to wealth creation. Finally, we take a fresh look at collective investments and the important role they continue to play in helping advisers build diversified, accessible and cost-effective portfolios for clients navigating increasingly complex markets. Although these topics may seem diverse, they share a common purpose: empowering people to make better financial decisions. Whether through thoughtful advice, innovative investment solutions or a deeper understanding of client behaviour, professional advice can create lasting financial confidence. I hope this issue provides fresh perspectives, practical insights, and ideas that strengthen the conversations you have with your clients every day. Stay financially savvy,

Sandy Welch

Editor, MoneyMarketing

Note: If you subscribe to our MoneyMarketing newsletter, you will receive a special discount off a News24 or Netwerk24 subscription*. Scan the QR code to subscribe now. *Offer available to new subscribers only.

@moneymarketing_sa @MoneyMarketingSA

4 // www.moneymarketing.co.za

When good investment stories go wrong

ince the mid-1990s, I have invested through more ‘onceBy Dr Nico Marais in-a-generation’ Chairman, Carmel Wealth themes than I care to count. The Euro conversion. The internet boom and its unravelling. China’s rise and the commodity super-cycle it unleashed. The quant revolution, until August 2007, demonstrated that when everyone owns the same factor model, the exit door is very small. The banking crisis and the moment repo markets froze. Biotechnology. Clean energy. Cryptocurrencies. ESG. Each produced investors who got the story exactly right and still lost money. AI isn’t one story, it’s five Today, the conversation is dominated by artificial intelligence. And it deserves to be. AI will reshape industries, upend established business models, and create enormous value. But AI is not a single homogeneous trend and that is where the investment question gets genuinely difficult. Will the value accrue to the semiconductor designers? The data centre operators? The cloud platforms? The software companies embedding it into workflows? Or the end businesses that deploy it most effectively? Knowing that “AI will be transformative” tells you almost nothing about which part of that value chain you should own, at what price, and when. The rotation already under way out of the largest AI-exposed names and into energy, industrials and small caps is an early sign of the market trying to answer that question for itself and discovering it is harder than the original story suggested. The internet’s real lesson The internet remains instructive, but not for the reason most people cite. The deeper lesson is not that prices were too high in 1999, it is what happened after. The genuine long-run winners were largely not the ones the market was pricing as winners in 2000. Google barely existed. Amazon was widely considered a bookshop with a logistics problem. The market was right that the internet would be transformative. It was wrong about who would own it. It is also worth remembering that we were genuinely excited about machine learning in the early 2000s, long before anyone called it artificial intelligence. What changed was not the idea but the moment the market decided to price it. Today’s AI is computationally more powerful than anything we imagined then, and the capabilities are real. But what makes the value chain question harder, not easier, is that a general-purpose capability moving this fast looks meaningfully different every eighteen months. Identifying who captures the value is difficult precisely

because the technology itself has not finished deciding what it is. The shrinking exit door The quant story adds another dimension. Factor-based investing was not wrong, as the logic of systematically owning quality, value and momentum is sound. What went wrong, periodically and spectacularly, was crowding. When enough capital chases the same signals, the unwind becomes the event. You see the same problem in thematic investing today. Most thematic funds are not as distinctive as their marketing implies. An AI fund is very likely a high-valuation, high-momentum growth bet in disguise. An investor holding a technology fund, an AI fund, and a clean-energy fund may believe they have diversified across three themes while having tripled their exposure to the same underlying risks. From consensus to panic The repo market in 2008 stays with me not because of the liquidity as investors in thematic funds can usually sell, just not at the price they expected but because of the speed. Outright disbelief on the desk, then panic, fast. Any crowded trade has the capacity to move from consensus to exit faster than the models suggest. When I look at the current valuations of many leading technology and AI companies, I find it genuinely difficult to construct a sensible path from today’s prices to an adequate return. These are extraordinary businesses. The issue is not the quality. The issue is what is already being assumed about growth rates, margin expansion, competitive durability, about who in the value chain ultimately wins, simply to justify the price on the screen today. I have seen that kind of assumption-loading before. In the infrastructure plays of 1999, the story was also good. It was the investment that let people down. Don’t avoid AI, just understand what you own The answer is not to avoid AI; missing a genuine structural shift carries its own risks. The answer is to understand what you own. Most portfolios already have more AI sensitivity than their owners realise, embedded quietly in funds that don’t carry the label. Stress-test that exposure: what does your portfolio look like if the multiples on the largest AI positions compress by 30 or 50 percent? Which holdings are genuinely diversified against that scenario, and which are simply correlated in ways that won’t be visible until they are? Participating in a powerful theme and being destroyed when it resets are not the only two options. The investors who navigate these cycles best are rarely the ones who called the theme earliest. They are the ones who never confused a good story with a resilient portfolio.

AUGUST 2026 // NEWS & OPINION

PROFILE

Zeenat Patel

Head of Investment Solutions at Glacier by Sanlam How did you get involved in the finance industry – was it something you always wanted to do? I’ve always loved maths. I knew I wanted a career where I could use it to solve problems. My first job was in finance, and I took the job because I really admired the person who hired me and was keen to work and learn from her. That’s how I landed in the industry in the first place. What kept me here is that finance turned out to be far more personal than I expected. Behind every number is someone’s retirement, their child’s education, the legacy they want to leave. Once I saw that, I never looked at it as ‘just numbers’ again. What was your first meaningful successful investment? Probably not the answer people expect! At school, I convinced my dad to lend me money to buy beauty products that I could sell. I repaid him and still made a small profit, which was probably my first taste of entrepreneurship and investing. Since then, I’ve invested in retirement savings, art and, admittedly, a handbag or two. But the best investments I’ve made have been in myself, my relationships, and the experiences that shaped me. Whether it’s education, learning a new skill, investing in my health, building my confidence or making time for the people who matter most, those investments have given me the richest returns. What have been your best and worst financial decisions? My best financial decision was backing myself to embrace change by taking on new roles, moving to the UK to accelerate my career and earning potential, and later returning to South Africa. My biggest financial mistakes came when shortterm pressures overrode long-term plans, including dipping into long-term savings to meet immediate needs. Those experiences reinforced the value of having a trusted financial adviser. Even those of us who work in finance aren’t immune to emotional decisions, so an objective adviser provides perspective, accountability and guidance when it matters most. What are the biggest lessons you’ve learnt over your career? One of the biggest lessons I’ve learnt is that technical knowledge gets you

in the room, but it’s your relationships, integrity and ability to communicate that really shape your career. I’ve also learnt that your career is ultimately in your own hands (and that having a particular job at a particular company does not define who you are). There will be times when people underestimate you or tell you you’re not ready, but you can’t let that define you. Self-belief is incredibly important. Be brave enough to put yourself forward because no one is going to build your career for you. You have to back yourself and leverage from time to time on the personal and professional relationships you have. Finally, never stop learning. Staying curious is one of the best investments you can make. Please explain a bit about your decision to move into this relatively new position and what it means to you. After many years in institutional investing, I was ready for something with a broader reach. I loved the technical work, but I wanted to build, not just analyse. Returning to South Africa was central to that. I wanted to bring that global perspective home and put it to work here. Today, the role gives me real strategic scope – it spans several very different parts of the business. It’s less about having all the answers and more about building the right team, asking the right questions, and finding the connective thread that helps the business grow from strength to strength. What advice would you give to young women just starting work in the financial services industry? Don’t be intimidated by financial services.

Everyone starts somewhere, so stay curious, ask questions and give yourself permission to learn. Don’t feel you have to fit a particular mould to succeed – you can be technically credible, analytical and still be authentically yourself. Finally, never underestimate the impact you can have on other women. Some of the most rewarding moments in my career have come from mentoring others and watching their confidence grow. What finance, investment trends and macroeconomic realities are currently on your watch list? The thing I think about most is South Africa’s savings gap – how few people are actually on track for the retirement they expect, and what our industry can do to close that. It’s not abstract to me; it shows up in the data we look at on how people engage with advice. Layered on top of that, geopolitics and AI are both reshaping how we invest and how we work, faster than most cycles I’ve seen. But none of that changes the fundamentals: keep the client at the centre, stay diversified, and don’t let short-term noise distract from longterm goals. What are some of the best books on finance and investing that you’ve ever read, and why would you recommend them? I always have more than one book on the go. I spend much of my day reading investment research and industry publications, so when I choose a business book, I tend to gravitate towards leadership. Two that I have read recently and that have stayed with me are The Broken Rung and The Social CEO. Both reminded me that great leadership is about creating opportunities for others, communicating authentically and continuing to grow yourself. And when I need to switch off completely, you’ll usually find me reading fantasy novels. It’s my way of escaping into a different world before diving back into this one.

“Even those of us who work in finance aren’t immune to emotional decisions, so an objective adviser provides perspective” www.moneymarketing.co.za // 5

NEWS & OPINION // AUGUST 2026

The SA company taking compliance to new levels

“Artificial intelligence is reshaping both sides of the financial crime battle” Built for one, designed for many The company’s early years were devoted to product development. Working alongside a listed enterprise customer gave the small team an unusually demanding environment in which to refine its platform. “When you’re building with an organisation as complex as a tier-1 bank, you become enterprise-grade very quickly,” says Elliott. He joined the business towards the end of 2022, after building technology ventures in digital payments, data analytics and online

6 // www.moneymarketing.co.za

education. His focus was taking the product to market and expanding RelyComply’s customer base beyond its first client. That strategy has paid off. The business now works with many of South Africa’s largest financial institutions while expanding into Botswana, Namibia, Kenya and Tanzania. In 2025, it established a presence in the UK. “Our platform is highly configurable rather than customised,” says Elliott. “Regulation differs slightly from country to country, but we’ve built the flexibility into the platform, which means we can adapt to different markets without having to rebuild the technology.” Fighting AI with AI Artificial intelligence is reshaping both sides of the financial crime battle. While it enables institutions to strengthen their defences, it is also making fraud more sophisticated. Criminal networks are increasingly using deepfakes, synthetic identities and automated software agents to bypass traditional identity verification. “Fraud has become professionalised,” Elliott explains. “It’s no longer an individual sitting in a basement with a laptop. These are organised criminal syndicates that collaborate, share information and adopt new technology incredibly quickly.” AI has also reduced the cost of committing fraud. Rather than relying on teams of fraudsters, syndicates can now deploy AI agents capable of generating thousands of fraudulent applications while constantly refining techniques to evade detection. “We’ve seen cases where 100 000 applications are generated using just a handful of identity documents,” says Elliott. “Once something works, that knowledge is shared across criminal networks almost instantly.” Compliance as a competitive advantage The same technology is becoming one of the industry’s most powerful defensive tools.

Within RelyComply’s platform, AI automates many manual compliance tasks, gathering information, preparing case files and highlighting unusual activity so specialists can focus on investigations. “There will always need to be a human in the loop because institutions have to explain every decision they make,” says Elliott. AI’s real strength lies in analysing vast amounts of transactional data to identify emerging money-laundering patterns that would be impossible for humans to detect. However, regulators increasingly require AI decisions to be transparent, auditable and explainable, making governance just as important as innovation. Balancing speed with accountability For RelyComply, success comes down to balancing efficiency with effectiveness. “Our customers are managing regulatory and reputational risk, so effectiveness will always come first,” says Elliott. “But if you can make compliance faster as well, it stops being just a cost centre and becomes a competitive advantage.” That philosophy has already delivered measurable results. In one implementation, the company reduced a customer onboarding process from nine days to just four minutes while maintaining full regulatory compliance. As financial crime becomes increasingly sophisticated, Elliott believes technology alone will never be enough. The future lies in combining intelligent automation with human expertise, enabling financial institutions to stay ahead of both increasingly complex regulation and everchanging criminal tactics.

Image: Getty Images

hen RelyComply was founded in 2020, the company was solving a practical problem that many financial institutions had simply learned to live with. Today, the South African fintech provides anti-money laundering (AML) and Know Your Customer (KYC) technology to 17 enterprise clients, including Standard Bank, Alexander Forbes, Liberty, Purple Group and PPS, while expanding into the UK and supporting customers across 10 countries. According to CEO Bradley Elliott, the company’s origins lie in a simple observation: compliance technology had failed to keep pace with the rapid digital transformation taking place across financial services. “The founders were doing data analytics consulting work for financial institutions when they were asked, almost at the last minute, to solve a compliance challenge before a new product launch,” he explains. “They built a simple solution that worked, and once other business units saw it, they realised there was a much bigger opportunity.” That opportunity stemmed from fragmented, ageing systems. Financial institutions often relied on multiple providers for different parts of the compliance process, creating complexity, slowing onboarding and making it harder to respond to evolving regulation. “There was a huge gap in anti-financial crime software,” says Elliott. “A lot of the technology was legacy technology. It wasn’t cloud native, it wasn’t modern, and there was a real opportunity to build something that helped large financial institutions move faster while remaining compliant.”

AUGUST 2026 // ADVICE FOR ADVISERS

The side of succession we do not talk about

hat happens to your Founder and Director, clients, PROpulsion your team, and your business when you are no longer there to hold everything together? Most of us treat succession as an admin task. Find a buyer, agree to a valuation, sign the agreements, transfer the book. Those things are important, and you need them in place. But anyone who has built an advice business knows it is never that simple. I have listened to advisers in tears telling their succession stories, because wrapped up in the business are relationships, promises, staff, systems, trust and years of sacrifice. So, I want to talk about the side of succession that does not get enough airtime: what it takes to prepare the business, the clients, the team and yourself.

By Francois du Toit

Succession is a process, not an event We tend to treat succession as an event, something we start thinking about the day we realise we are tired and no longer enjoying the work. By then the clients, the staff, and the systems are rarely ready, because we never prepared them. In my view, real succession happens inside your business. You bring someone in, or you develop someone who is already there, and you mentor them to take over. That takes years, which means it starts long before you feel ready to leave. Ideally it starts the day you start building the business. Here is a simple exercise. Write down your ideal exit window, whether it is two years away or 10. Then ask yourself one question: If I had to step away in 12 months, what would not be ready? Your answer shows you exactly where

to start. It also gives you something precious when the time comes: a choice. What you are really transferring is trust Moving a book between FSPs is harder than many advisers realise. Loose arrangements with a friendly FSP often fall over because neither of you is a key individual on the other’s licence, and many product providers insist on transferring clients one by one. Sort those mechanics out early. But the book is the easy part. Your clients do not have a relationship with the person buying your business. They have a relationship with you, and what they have placed in you is trust. I felt this recently when I closed my accounts at a bank I had been with for around 40 years. I felt nothing. No relationship, no banker I knew, just a number on a screen. Our businesses are the opposite of that, and that is exactly why the handover is so hard. The goal is that clients barely notice you have gone; and, ideally, find that things got even better. Three practical steps help. Identify the 20 client relationships that carry the most risk in a transfer and start introducing those clients to your successor as long as possible before anything changes. Document how you serve clients and make it easy by recording yourself talking through it, then turning the transcript into a written process. And check that your successor’s philosophy on fees and service matches yours, because a mismatch there will cost you client trust very quickly. Letting go is by far the hardest part Our businesses carry our identity, our routines, our sense of being needed. We warn retiring

clients about losing their purpose, and then we sit with the same thing. There is guilt about promises we have not yet delivered on, fear that the next person will not care the way we do, and grief even when everything goes to plan. All that emotion makes us do one thing very well: delay. So be honest with yourself about what you are afraid of losing and design the next chapter of your life long before you have to live it. We do this for clients every day. We must do it for ourselves too. Five stages to work through 1. Prepare the business: Clean up your data, document your processes, and reduce its dependence on you. 2. Prepare the clients: Introduce them to the team, talk about ‘our clients’ rather than ‘my clients’, and communicate continuity rather than exit. 3. Prepare the team: Clarify roles and involve key staff early so nobody feels blindsided. 4. Prepare yourself: Decide what role, if any, you want after the transition. 5. Prepare the handover: Agree timelines, make the process visible so trust can transfer with it, and phase yourself out rather than disappearing overnight. Which of these stages have you been avoiding? And what is one thing you can do in the next three days to make your business easier to transfer? Succession is coming, whether we plan for it or not. The only question is how ready your business, your team, and your clients will be. Stay curious! Du Toit believes that when financial planners build great practices, they change lives at scale. He also believes we must grow the entire profession so that everyone benefits. That is why he founded PROpulsion, where he helps planners grow through community, events, and expert resources. He hosts the weekly PROpulsion LIVE show on YouTube with over 325 episodes. Visit www.propulsion.co.za.

www.moneymarketing.co.za // 7

ADVICE FOR ADVISERS // AUGUST 2026

Patient capital is working even harder than you think

8 // www.moneymarketing.co.za

out the annualised returns. They look at initial capital and final capital.” The lesson is not that property returns are exceptional but that the time invested is what matters. Applying the same assumptions to the Coronation Balanced Plus Fund – R1m invested with the same additional cashflows for renovations and solar – the outcome after 26 years, after all costs including manager fees and trading costs, would be just under R26m. That is 26 times the initial capital. One Coronation client captured this perfectly. Having invested R10 000 in the Balanced Plus Fund five weeks after it launched in May 1996, the client made no transactions for 27 years. From 2023, they made 10 withdrawals totalling 33 times the original investment – and still hold capital of roughly 12 times the initial amount. So why do so few investors achieve these long-term returns? Leinberger pointed to the structural features of financial markets that drive value-destructive behaviour: pricing transparency, mark-to-market valuations, extraordinary liquidity and brutal drawdowns. “Have you ever met anyone who agonises about what their house value did in the last quarter?” he asked. “No, because they don’t have that data.” Investors in financial markets can see prices in real time and react to them, buying when news is good and prices are high, selling when news is bad and prices are low. He illustrated the cost with S&P 500 data. While most calendar years deliver positive returns, investors must endure significant intra-year drawdowns to capture the full-year return. Last year, the index returned 10%, but only for investors who sat through a 9%

drawdown within the same period. Leinberger’s second message was one of optimism. Despite record-high indices, Coronation’s asset allocation funds remain fully invested in equities, because, he said, Coronation is not invested in the indices but in individual stocks. In global markets, the rise of passive investing, which is now more than half of assets combined with roughly 80% of flows being driven by non-fundamental investors, has damaged the price discovery mechanism. “We think it’s broken the market,” said Leinberger, leaving mispriced stocks that long-term stock pickers can exploit. The upside to intrinsic value in Coronation’s global and emerging market portfolios is close to 100%, meaning investors are getting roughly $2 of value for every $1 invested. In South Africa, a narrow market driven by the precious metals rally created similar opportunities. Coronation was overweight gold five years ago for sound reasons, said Leinberger, but reduced exposure when the gold price dislocated from fundamentals and became a momentum trade. When renewed conflict broke out and escalated in the Middle East earlier this year, gold fell rather than rose, vindicating the view that it had lost its hedge quality. The correction has left value across the rest of the market. “This is not the time to move clients’ capital into cash,” said Leinberger. “This is the time to stay invested with stock pickers.”

“This is not the time to move clients’ capital into cash”

Image: Getty Images

arl Leinberger, Chief Investment Officer at Coronation, delivered two messages at the recent Glacier Invest Summit 2026 that financial advisers would do well to carry into their client conversations. The first is a case for patient capital – the idea that time, more than anything else, determines investment outcomes. He described exponential growth and diversification as two forces investors can harness for free, urging the audience to look past the noise and focus on horizons of five, 10, 15 and 20 years. The ultimate illustration is Warren Buffett, who retired at the age of 95 having outperformed the market by 9% a year for seven decades. The result was $150bn accumulated from a starting point of zero. Such is the power of compounding that had Buffett lost 99% of his capital on his final day, he would still have ended up with more than the market. Yet, the less obvious point, said Leinberger, is what Buffett’s capital looked like at age 52 – the age Leinberger is today. After three decades of work, Buffett’s capital stood at just $400m. Impressive, but a fraction of the $150bn he would eventually accumulate. Had Buffett retired at a normal working age, few would have heard of him. “As important as the returns you achieve on an annualised basis is the time you were investing,” said Leinberger. “It’s time in the markets that will define your ultimate outcomes, rather than trying to time markets.” The asset class that best demonstrates this principle for most South Africans is residential property. Leinberger calculated that had he bought a house for R1m when he joined Coronation in August 2000, and held it for 26 years – with two renovations and solar panels – the property would be worth just under R7m today, based on the National Residential Property Series average annualised return of 7.7%. “People are always so happy with what their homes have done,” he said. “The reason is they don’t go back and work

AUGUST 2026 // WOMEN IN FINANCE

Women are reshaping the future of financial advice

or much of its history, financial services has been viewed as a male-dominated profession. Today, however, that picture is changing. Across wealth management, fiduciary planning and financial advice, more women are entering the industry, pursuing specialist qualifications and taking on leadership positions. In doing so, they are helping to redefine what exceptional client service looks like. Sarah Love, CFP® FPSA® TEP, Director of the Private Client Trust Fiduciary Team, says, “It’s a privilege to be part of a business that has been recognised as a Top Gender Empowered Company. The recognition reflects the calibre of women across our organisation and the contribution they make every day through their expertise, professionalism and commitment to clients.” Love believes creating an environment where women are encouraged to develop professionally and pursue leadership opportunities ultimately benefits both employees and clients. Nowhere is this more evident than in fiduciary planning, where conversations often extend far beyond financial products. “Fiduciary planning is ultimately about people,” she explains. “We spend much of our time discussing family dynamics, succession, vulnerability, loss and some of the most important decisions our clients will ever make.”

While technical expertise remains fundamental, Love says successful advisers also need to communicate clearly, listen carefully, and build lasting trust. “Many clients appreciate having advisers who take the time to understand their circumstances and concerns before offering solutions. While I don’t believe good advice is determined by gender, I do believe our team brings a high degree of empathy, collaboration and genuine care to client relationships.” The profession itself has evolved significantly over the past decade. Love says it is very encouraging to see more women pursuing respected specialist designations such as CFP®, FPSA and TEP, creating a more diverse and representative profession than when she began her career. However, she believes attracting women into financial services is only the first step. “Organisations also need to create pathways for women to progress into leadership positions and specialist technical roles,” she says. “Mentorship, professional development, and visible role models remain important if we want to retain talent and build sustainable careers.” At the same time, the needs of female clients are also changing. Increasingly, women are taking direct responsibility for managing family wealth through successful careers, entrepreneurship, inheritance or changing personal circumstances such as divorce. Rather than delegating financial decisions, many want to understand how investment structures, trusts and estate planning strategies work, so they can make informed decisions with confidence. “I find that many female clients want to be actively involved in financial decision-making

“I do believe our team brings a high degree of empathy, collaboration and genuine care to client relationships” and have a clear understanding of how structures, investments and estate-planning strategies work,” says Love. “They are looking for advice that is tailored to their specific goals and circumstances rather than a one-size-fitsall approach.” She adds that women’s generally longer life expectancy and the reality that many take on caregiving responsibilities make retirement planning, wealth preservation and succession planning particularly important. For young women considering a career in financial services, Love’s advice is refreshingly practical. “My advice would be to focus on building strong technical foundations while never losing sight of the fact that this is ultimately a people-centred profession,” she says. “Keep learning, build trust through honesty and follow-through, pay attention to detail, and support those around you.” As the profession continues to change, it’s becoming increasingly clear that the future of financial advice will be shaped not only by technical expertise, but also by the ability to build meaningful relationships, understand clients’ lives, and guide them through life’s most important decisions. For a growing number of women in financial services, that combination of knowledge and empathy is proving to be one of the profession’s greatest strengths.

The FPI recognises the quality of the content of MoneyMarketing’s August 2026 issue and would like to reward its professional members with 2 verifiable CPD points/hours for reading the publication and gaining knowledge on relevant topics. For more information, visit our website at www.moneymarketing.co.za

Image: Getty Images

EARN YOUR CPD POINTS

www.moneymarketing.co.za // 9

WOMEN IN FINANCE // AUGUST 2026

he financial services industry has made significant strides in creating opportunities for women, yet many highly capable professionals continue to face an invisible By Brunhilde Gerber challenge: recognising Deputy Head of School: and embracing their Financial Services own influence. As we celebrate Women's Month, it is important not only to acknowledge the remarkable achievements of women who have risen to leadership positions, but also to reflect on how success itself is evolving. For many women in financial services today, success is no longer defined solely by titles, promotions or boardroom seats. It is increasingly measured by impact, purpose, continuous growth, and the ability to create opportunities for others. Throughout my own journey across education and financial services, I have observed a common theme among high-performing women. Despite their qualifications, expertise and accomplishments, many still underestimate the value they bring to their organisations, teams and clients. This phenomenon is not unique to financial services. Women often feel compelled to wait until they are fully prepared before pursuing a new opportunity, applying for a promotion or sharing their insights. Yet, some of the most successful leaders are not those who know everything, but those willing to learn, adapt and step forward despite uncertainty. The modern financial services industry demands precisely this mindset. Rapid technological advancement, evolving client expectations, regulatory complexity, and economic uncertainty require professionals who embrace lifelong learning. In this environment, education becomes more than a qualification; it becomes a source of confidence and empowerment. Nelson Mandela famously said, “Education is the most powerful weapon which you can use to change the world.” For women in financial services, this statement remains profoundly relevant. Education does more than develop technical expertise; it empowers women with the knowledge, skills and confidence to pursue leadership opportunities, contribute strategically, and influence meaningful change. Every qualification earned, designation achieved, course completed or challenge overcame contributes to a stronger professional identity. Education equips women not only

10 // www.moneymarketing.co.za

with competence but with the confidence to participate meaningfully in strategic conversations, challenge conventional thinking, and lead with credibility. Higher education and professional development have long been recognised as powerful catalysts for transformation. They challenge outdated stereotypes, open doors to opportunities and create pathways to leadership. While women today make up a significant portion of university graduates and

industry professionals, representation at senior leadership levels remains a work in progress. Continued investment in education and development is therefore critical to ensuring that women are equipped not only to enter the industry, but to thrive and lead within it. However, stepping into one's power is about more than professional development. It is about recognising that leadership does not require permission. Many women make an impact long before they receive a formal leadership title. They mentor colleagues, guide clients through difficult financial decisions, champion ethical practices, build trust within teams, and contribute innovative ideas that strengthen their organisations. One of the most significant shifts taking place within financial services is the recognition that diverse perspectives drive better outcomes. The industry serves an increasingly diverse client base, and organisations benefit when leadership reflects the communities they serve. Women bring valuable perspectives that influence decision-making, strengthen client relationships, and contribute to innovation. Women are agents of change. They are reshaping client engagement, driving innovation, strengthening governance, and helping organisations become more inclusive and responsive to a changing world. Equally important is the role women play in creating pathways for others. True success is not

measured only by personal achievement but by the opportunities created for those who follow. Mentorship remains one of the most powerful tools for advancing female leadership. The women who have achieved success today often do so because someone believed in their potential. By sharing knowledge and supporting emerging professionals, today's leaders help build a stronger and more inclusive industry for tomorrow. This mentorship creates a ripple effect that extends far beyond individual careers. Emerging professionals gain confidence, visibility and encouragement to pursue opportunities they may otherwise have overlooked. As more women step into leadership roles, they inspire future generations to envision themselves as advisers, executives, entrepreneurs and decision-makers within the financial services sector. The ripple effect extends even further. When women succeed in financial services, the impact reaches clients, families, communities and the broader economy. Women help individuals achieve financial security, guide families toward long-term resilience, and contribute to economic growth through informed decision-making. Their influence often stretches across generations, shaping financial outcomes and creating opportunities for others. We should therefore move beyond simply recognising women who have reached the top of their professions. We should celebrate every woman who is actively growing, learning, leading and influencing change within her sphere of impact. The future of women in financial services will not be shaped solely by those with the most senior titles. It will be shaped by those willing to bring their authentic voice to the table, commit to continuous growth, and use their influence to elevate others. We recognise that stepping into one's power is not about perfection; it is about growth. Education, whether through formal qualifications, professional development or lifelong learning, equips women with the confidence to lead, influence and create meaningful change. The women shaping South Africa's financial services industry today are redefining success on their own terms, using their knowledge, voice and influence to uplift clients, organisations and future generations. Their journeys remind us that when women are empowered to learn, lead and succeed, the benefits extend far beyond individual achievement; they strengthen the entire industry and help build a more inclusive and prosperous society.

Image: Getty Images

Stepping into your power: Redefining success in financial services

Reco

nis

WOMEN IN FINANCE // AUGUST 2026

Why advisers need to rethink how they serve women

he most pressing question for financial advisers this Women’s Month is whether the industry is truly meeting the needs of women as investors. According to Lungile Macuacua, Portfolio Analyst at 1nvest, the answer is 'not yet'. While women are increasingly participating in investing and seeking professional financial advice, much of the industry still assumes a ‘default investor’ whose financial journey looks very different from that of many South African women. “We already know that women head nearly 40% of South African households,” says Macuacua. “That’s the future of the industry’s growth, not a special-interest segment that advisers serve on the side.” For advisers, understanding this shift could become one of the biggest competitive advantages of the next decade. An unconventional route into finance Macuacua’s own career reflects the changing face of the investment industry. Instead of studying finance, she completed a degree in chemical engineering at the University of Cape Town before joining STANLIB Asset Management as a graduate. Far from being a disadvantage, she believes her engineering background shaped the way she approaches investment management. “Chemical engineering is really about understanding how complex processes behave when the inputs are noisy and the relationships aren’t linear,” she explains. “Markets behave in much the same way.” She says her engineering training taught her to return to first principles and question assumptions. “I think people from a pure finance background sometimes inherit certain assumptions, whereas engineers are trained to test them. That’s really been my edge in this industry.” Competence speaks louder than assumptions Although investment management remains a male-dominated profession globally, Macuacua says the biggest challenge has been overcoming assumptions, not mastering the technical aspects of the job. “As a young black woman, you often walk into a room and you’re immediately read as junior or as the person who’s there to take notes,” she says. “You have to earn technical credibility that others are sometimes handed automatically.” Rather than allowing those perceptions to define her career, she focused on becoming technically excellent. “When your numbers and your reasoning are aligned, the work argues for you.” She also distinguishes between mentors and sponsors. While mentors provide guidance, sponsors actively advocate for

12 // www.moneymarketing.co.za

talented professionals when opportunities arise. “The work has to be excellent,” she says. “But you also need people who speak for you when you’re not in the room.” Women invest differently – and that’s a strength Recent industry data shows more women are investing directly, while adviser usage among women continues to increase. Macuacua believes these trends reflect different motivations rather than differences in financial capability. “I don’t read this as a capability gap,” she says. Instead, she believes many women approach investing with longterm goals rather than short-term trading opportunities. “Direct share trading is often marketed almost like a competitive sport – pick the winner, beat the market. That framing doesn’t necessarily resonate with how most women approach money.” Women, she says, are more likely to invest with specific life objectives in mind. “It’s about funding a child’s education or planning for retirement rather than the thrill of the trade.” This is one reason she believes financial advisers remain particularly valuable for female clients. “Working with an adviser creates a plan and a relationship. Products like ETFs also provide a bridge because they offer diversification, transparency and low costs without requiring investors to make concentrated bets on individual companies.”

“When your numbers and your reasoning are aligned, the work argues for you”

Financial stress isn’t always a knowledge problem One of Macuacua’s strongest messages is that advisers should avoid assuming financial stress reflects poor financial literacy. “You can be excellent at managing money and still be deeply stressed,” she says. “The stress usually isn’t about competence. It’s about capacity.” She points to the realities many South African women face, including interrupted careers, caregiving responsibilities, and single-income households. “No amount of financial literacy closes those structural gaps on its own.” Rather than responding with more education alone, she believes advisers should build financial plans that recognise those realities. “The more useful approach is to take those real constraints seriously and plan around them through resilience, emergency provision and protection.”

Moving beyond the ‘default investor’ Macuacua believes the industry’s biggest blind spot lies in product design and marketing. “Much of the industry still designs around a default investor who has uninterrupted employment, continuous income and retires at around 65.” Women’s financial journeys often look very different. Career breaks for caregiving, inconsistent contributions and longer life expectancies all influence investment outcomes; yet these realities are not always reflected in product design or advice processes. She also believes advisers should examine their own unconscious biases. “We need to stop reading caution as low ambition or automatically directing conversations to the husband when both partners are present.” Equally important is measuring whether firms are genuinely serving female clients effectively. “If we scrutinised how well we serve women with the same rigour that we measure investment performance, the gaps would become impossible to ignore.” Building financial independence As a young mother whose grandmother participated in South Africa’s liberation struggle, Macuacua sees financial independence as part of a much longer journey. “The freedoms I get to exercise in my career today were fought for by women who had far fewer rights,” she reflects. She hopes her own daughter will inherit not only those freedoms but also the financial confidence to build on them. “My grandmother and mother made room for me. My job is to ensure that my daughter inherits even more.” For advisers, Macuacua says: “Stop designing for a default client and adjusting for women afterwards. Start building advice around the full range of how people actually earn, invest and live.” Those who do, she argues, will be positioning themselves ahead of where the profession is ultimately heading. As she puts it, “Competence compounds like capital.” Her message for young women goes further: “Show up prepared, let your work be undeniable, and keep putting your hand up for opportunities. The doors will open.”

AUGUST 2026 // WOMEN IN FINANCE

Women taking responsibility for estate planning

omen are increasingly taking control of their financial futures. They are building careers, running businesses, accumulating wealth and, in many cases, carrying the primary responsibility for raising children. Yet, one area of financial planning still receives far too little attention: estate planning.

By Khatoon Smith Legal Manager, Fairheads Benefit Services

Testamentary trusts This is where trusts play an important role. A testamentary trust, established through a will, enables assets intended for minor children to be managed by trustees according to the wishes of the deceased. Rather than a large inheritance being paid directly to a child or administered under less flexible arrangements, the trust provides ongoing oversight of investments and distributions for education, healthcare and living expenses. However, establishing and administering a stand-alone testamentary trust is not always the most practical solution. For many middleincome families, particularly where estates are relatively modest, the costs of creating and maintaining an individual trust can outweigh

the benefits. Administration, governance and trustee responsibilities all come with ongoing expenses, while registration with the Master of the High Court can also delay access to funds. Umbrella trusts An increasingly attractive alternative is an umbrella trust, such as the Fairheads Legacy Trust. These structures allow testamentary bequests to be housed within an existing professionally administered trust, with each beneficiary allocated their own sub-trust. Because administration and governance costs are shared across multiple beneficiaries, umbrella trusts can offer a significantly more cost-effective solution without sacrificing professional oversight. They also avoid the need to establish an entirely new trust structure before benefits can be distributed. Professional trustees, supported by appropriate governance and independent investment expertise, can ensure that inherited assets are managed prudently and in the best interests of beneficiaries. This can provide valuable peace of mind to parents who want their children to be financially protected, particularly during their formative years. Estate planning should never be viewed as simply a legal exercise completed at the end of life. It is an essential part of responsible financial planning that protects families, preserves wealth and provides certainty when it is needed most. For women, who often balance multiple financial and caregiving responsibilities, taking the time to draft a will and consider the most appropriate trust structure is one of the most important investments they can make in their family's future.

Image: Getty Images

Many women assume that drafting a will is something that can wait until later in life, or that it only becomes necessary once significant wealth has been accumulated. The reality is that every adult who owns assets or has dependants should have a valid will in place. Without one, the distribution of an estate is determined by the laws of intestate succession,

rather than by personal wishes. This can create unnecessary delays, costs and uncertainty for loved ones at an already difficult time. For mothers in particular, estate planning extends well beyond deciding who inherits assets. It is about ensuring that minor children are protected financially if the unexpected happens. While many parents have life insurance in place, fewer have considered how those proceeds should be managed until their children become financially mature.

01 1447_Starter_Market_Print_Add_Design.indd 1

2026/07/24 13:36

www.moneymarketing.co.za // 13

WOMEN IN FINANCE // AUGUST 2026

Women, wealth and the power of better advice

outh African women carry an evergrowing share of the country’s financial responsibilities, yet many remain dangerously underinsured and unsure where to begin investing. The cost of inaction falls on women themselves, and the families and communities that depend on them. Three industry specialists from Liberty explore what needs to change. The common thread is unmistakable: when advice shifts from selling policies to protecting futures, the conversation changes – and so do the outcomes.

Building financial security around real life Lydia Davidson, Senior Manager: Technical Marketing at Liberty

As women, we rarely think about our lives in neat compartments. On any given day, I am a professional, a mother, a partner, a daughter and a friend, while somewhere in between trying to remember to look after myself, too. None of these roles exists in isolation, so why should financial planning? That is why the shift from leading with financial products to beginning with life’s moments is so important. Clients don't wake up thinking they need a disability policy or additional life cover. They think about paying school fees, caring for ageing parents, buying a home, protecting the lifestyle they have worked hard to build and creating opportunities for the people they love. The role of a financial adviser is to connect these deeply personal priorities with practical financial planning and protection. For women in particular, this conversation matters. Women have traditionally carried much of the responsibility for planning and supporting family life, while also becoming increasingly important financial contributors.

14 // www.moneymarketing.co.za

Many manage these responsibilities alone. Being actively involved in financial planning is therefore not simply good practice; it is essential. Financial planning should also never be treated as a once-off event. Life continues to evolve through expected milestones and unexpected challenges. Careers change, families grow, health circumstances shift and responsibilities increase. An advice-led approach recognises that financial needs must evolve alongside these life stages, helping to ensure that an unexpected setback does not undo years of careful saving and investing. This is where holistic advice becomes invaluable. Financial risks are interconnected. If I am unable to work following an accident, my family’s monthly expenses do not stop. If I am diagnosed with a serious illness, the financial impact may extend far beyond medical bills. It could affect education plans, retirement savings, and long-term financial independence. A skilled adviser helps clients understand these connections and put appropriate plans in place to protect both what they have already built and the income they may earn in the future. Perhaps one of the most powerful conversations we can have with clients this Women’s Month is about the value of their future earning potential. Consider how much all the income a woman expects to earn over the rest of her working life would be worth today. For most people, the amount is surprisingly significant, and the younger she is, the greater that future value may be. That realisation changes the conversation. Protection is no longer about buying another financial product. It becomes about preserving choices, opportunities and the future she is working so hard to create. That is a conversation every woman deserves to have, and one worth having with a trusted financial adviser.

“Perhaps one of the most powerful conversations we can have with clients this Women’s Month is about the value of their future earning potential”

Protecting the invisible safety net Elaine Markus, Head of Insurance Products at SBIB

South African women are carrying an evergrowing share of the country’s financial responsibilities, yet many remain dangerously underinsured. It’s a paradox with significant consequences; not only for women themselves but also for the families and communities that depend on them. With almost 40% of South African households headed by women, their role as providers, caregivers and financial decisionmakers has never been more important. Yet many still lack adequate life, disability and income protection. According to the latest ASISA Gap Study, the average South African income earner faces a death cover shortfall of R1.3m and a disability protection gap of R1.8m. Women are among the least adequately insured, despite often carrying extensive financial obligations. The reasons are largely structural. Women continue to earn less than men on average, are more likely to interrupt their careers for caregiving, and often stretch limited disposable income across multiple dependants. When finances are tight, longterm protection is frequently sacrificed in favour of immediate household needs. Many also underestimate their own financial value, insuring homes, vehicles and family members before protecting the income that keeps their households functioning. If that income disappears through death, disability or illness, entire family support systems are affected. One of the clearest examples of this protection gap is the widespread reliance on funeral cover. While it provides immediate financial assistance after a death, it does

AUGUST 2026 // WOMEN IN FINANCE

little to replace lost income, settle debt, fund children’s education, or provide ongoing household support. Funeral cover protects the event; life and disability cover protect the future. For financial advisers, every funeral cover discussion should become a broader conversation about income replacement, disability protection, and long-term family security. A key challenge is helping women recognise that their greatest financial asset is often their ability to earn an income. While most people can picture the cost of a funeral, few consider the financial impact of being unable to work for years because of illness, injury or disability. The conversation also needs to change. Technical discussions around waiting periods, disability definitions and benefit structures rarely resonate. Instead, advisers should focus on practical outcomes: keeping children in school, maintaining household income, meeting financial commitments, and preserving dignity during difficult times. Income protection becomes far more relevant when it is framed as protecting a family’s future rather than selling an insurance product.

Image: Getty Images

“For many women, the greatest barrier to investing is not a lack of opportunity or ambition, but simply knowing where to begin” Products must also reflect the realities of modern family life. Many women simultaneously support children, elderly parents and extended family members, yet insurance solutions often still assume traditional nuclear-family structures. More flexible products that evolve through different life stages, accommodate multiple dependants, and integrate life, disability and critical illness cover would better reflect women’s lived experiences. Ultimately, however, product innovation alone is not enough. The industry’s greatest mistake is talking about products instead of purpose. Women are motivated by protecting the people who rely on them, not by policy features. Rather than asking clients how much cover they have, advisers should start by asking who depends on them and what would happen if their income stopped tomorrow. Women are often the invisible safety net within their

families and communities. Protecting them means protecting the network of lives and opportunities that depends on them every day.

Taking the first step towards wealth creation

Luvhani Makoni, Lead Specialist: Investment Proposition at Liberty

For many women, the greatest barrier to investing is not a lack of opportunity or ambition, but simply knowing where to begin. Whether they are single mothers balancing competing financial priorities, professionals who have left financial decisions to a partner, or women rebuilding after divorce or widowhood, taking that first step can feel overwhelming. Financial jargon, market volatility and the fear of making costly mistakes often delay decisions that could have a lasting impact on long-term financial security. The first step is understanding what you can realistically afford to invest by taking stock of your income, expenses and debt. Building an emergency fund is equally important, ensuring longterm investments are not accessed prematurely when unexpected expenses arise. Protecting the ability to earn an income also forms part of the foundation, with appropriate risk cover safeguarding against disability, severe illness or loss of income. Successful investing starts with a

clear objective rather than product selection. Whether the goal is funding a child’s education, buying a home, preparing for retirement or building generational wealth, having a defined purpose makes it easier to stay invested during periods of market volatility. Time horizon and risk tolerance are equally important in determining the most appropriate investment strategy. For women concerned about losing capital, structured products can provide an effective entry point by offering a degree of capital protection while introducing clients to market participation. However, they should form part of a broader financial plan that considers investment objectives, tax, liquidity and overall portfolio construction. Advisers also need to explain the trade-off: greater capital protection may mean sacrificing some upside when markets perform strongly. Structured products should therefore be viewed as complementary solutions that help cautious investors build confidence over time. One of the industry’s biggest challenges is communication. Financial services often assume a level of knowledge that first-time investors simply do not have, making investing seem more intimidating than it needs to be. Simplified product design, transparent solutions and language that clients can relate to all help make wealth creation more accessible. Equally important is changing how advisers begin conversations. Rather than leading with risk questionnaires and product brochures, advisers should start by asking, What are you trying to protect? and What are you trying to build? These questions shift the focus from products to personal aspirations. Adviser training should also incorporate behavioural insights, helping advisers understand how life events such as widowhood, divorce or single parenthood shape financial decision-making. Perhaps the most valuable lesson for new investors is not to wait for the perfect moment. Start before you feel ready and with whatever you have. Building wealth is rarely about finding the perfect investment. More often, it is about taking the first step, staying invested, and working with a trusted financial adviser who can guide the journey over time.

www.moneymarketing.co.za // 15

EMPLOYEE BENEFITS // AUGUST 2026

outh African employers are discovering that employee wellbeing can no longer be siloed as a human resources concern. The businesses that thrive will be those that treat their people as the foundation of sustainable performance rather than a line item to be managed.

The impact of AI adoption As Artificial Intelligence (AI) becomes embedded in everyday work, South African employers are facing a new wellbeing challenge: helping employees adapt to rapid workplace change while maintaining productivity and resilience. According to BCG’s recent AI at Work research, 72% of South African employees now use AI regularly, placing the country among the world’s leading adopters. While 67% of regular AI users report higher job satisfaction, 41% also experience increased mental strain. In addition, 72% say AI has changed the skills required in their roles, with many spending more time directing AI systems than performing tasks themselves. “The conversation around workplace wellbeing has changed considerably,” says Glenn Simpson, Client Services Manager at Lyra Southern Africa. “Alongside financial pressures and economic uncertainty, employees are adapting to new technologies, learning new skills, and adjusting to changing ways of working.” Lyra says organisations are increasingly seeing three key challenges emerge: pressure to continuously upskill, uncertainty about future career relevance, and digital fatigue caused by constant connectivity and information overload. While AI offers significant opportunities to improve efficiency and expand access to employee wellbeing services, Simpson cautions that technology alone is not the answer. “Sustainable performance requires investment in people, skills development, and healthy workplace practices.” He adds that successful AI adoption depends on balancing technological capability with human judgement, empathy and trust, as meaningful human connection remains central to effective wellbeing programmes.

The hidden cost of absenteeism Absenteeism remains one of the biggest hidden costs facing South African businesses. Estimates from Occupational Care South Africa and Statistics South Africa suggest it costs the economy more than R20bn annually, with around 15% of employees absent on any given day. Many organisations record absenteeism rates of 3.5% to 6%, well above the 1.5% considered healthy. The impact extends far beyond lost working days. Deadlines slip, colleagues shoulder additional workloads, morale suffers, and

16 // www.moneymarketing.co.za

employers incur higher overtime, temporary staffing and training costs. In industries such as manufacturing and construction, understaffing can also compromise safety. For employers, even small improvements deliver significant savings. A 1 000-person company averaging eight absence days per employee could lose around R26m a year. Reducing absenteeism by just 10% could recover approximately R2.6m. “Absenteeism is a productivity and profitability issue that happens to sit in the HR file,” says Rene Richter, Reward and Benefits Lead Advisor at Paymenow. Richter believes financial stress is a major, but often overlooked, driver of absenteeism. Employees struggling with money are more likely to delay medical treatment, experience poor sleep, and lose focus at work.

“Sustainable performance requires investment in people, skills development and healthy workplace practices” One solution is earned wage access (EWA), which allows employees to access wages they have already earned before payday without taking on debt. According to Paymenow’s 2026 Impact Performance Report, 88% of users reported lower financial stress, while 94% said their quality of life had improved. “When financial stress declines, employees are more present, focused and productive,” says Richter. “Supporting financial wellbeing isn’t simply an HR initiative – it’s an investment in business performance.”

Employee mental health as an insurance risk Employee mental health has become a measurable business and insurance risk. The South African Depression and Anxiety Group (SADAG) estimates that one in six South Africans will experience a mental health disorder during their lifetime, with depression and anxiety among the country’s leading causes of disability. According to Ryno de Kock, Head of Distribution at PSG Insure, poor mental health can directly affect workplace performance and increase an organisation’s exposure to costly insurance claims. “A distracted employee who provides incorrect advice, misses a critical deadline or delivers flawed work exposes the business to professional indemnity claims,” says de Kock. “Lapses in concentration can also lead to accidents, equipment damage or operational failures that trigger liability claims.” In highly regulated industries such as financial services, healthcare and law, impaired judgement can also result in regulatory

penalties and reputational damage. South African employers have legal obligations to provide psychologically safe workplaces under legislation, including the Occupational Health and Safety Act and the Labour Relations Act. “Where an employer knew or reasonably should have known that an employee was at risk and did nothing about it, the basis for a claim may already exist,” de Kock explains. He believes businesses should treat mental health as part of their overall risk management strategy by conducting regular risk assessments, offering employee assistance programmes, and training managers to identify signs of distress. “Mental health is a business continuity, operational and governance risk. Prevention, supported by appropriate insurance cover, is the best way to reduce exposure and protect both employees and the organisation.”

Focus on generational stability Employee benefits have the potential to do far more than attract and retain talent – they can help close South Africa’s persistent wealth gap and create lasting financial security for families. According to Fikile Matabane, Executive: Employee Benefits at ASI Financial Services, employers should view benefits as a long-term investment in financial inclusion rather than simply a compliance requirement. “Employee benefits are one of the most powerful corporate levers available for closing the wealth gap in this country,” says Matabane. For many employees, formal employment provides their only access to retirement savings, insurance and other financial protection. Matabane says comprehensive employee benefits can help break the cycle of intergenerational financial dependence, where young professionals support ageing parents who were unable to build sufficient retirement savings. “When an employee has adequate retirement provision, they are not only securing their own future, but they are also freeing their children from the burden of supporting them in old age. That freedom is capital.” He believes employers have an important role to play in improving employees’ long-term financial wellbeing. “Employers who are serious about transformation cannot limit their focus to employment equity headcounts.” By combining robust retirement, health and risk benefits with financial education, businesses can improve employee wellbeing, strengthen productivity and help build more financially resilient families for generations to come.

Image: Getty Images

workplace considerations for employers right now

AUGUST 2026 // EMPLOYEE BENEFITS

By John Clark

Driving your competitive advantage through strategic human capital

o attract, retain and support talent amid a challenging economic backdrop, employers often focus on granting competitive salaries while trimming prized benefits and discretionary perks – such as guaranteed 13th cheques, paid parental leave, and aggressive sign-on bonuses – in favour of keeping basic pension funds and group life policies. This short-sighted approach will not win the talent war. While controlling operational costs, progressive businesses should focus on a few key trends to ensure that employees feel valued and employers’ satisfaction is reciprocal.

stability, retirement outcomes, and the success of a corporate benefit plan. Traditional benefits are increasingly being supplemented with budgeting assistance, debt counselling, financial coaching and retirement planning tools. Employers are recognising that financial anxiety affects productivity, absenteeism and staff retention. In many cases, improving employees’ financial wellbeing may deliver a greater return than simply increasing insurance benefits. IFAs who truly partner with corporate clients should encourage and facilitate such programmes, delivering beyond the usual offerings to enhance long-term benefits and corporate reputations.

Driving financial literacy and wellness programmes South Africa’s employee benefits landscape is undergoing significant change, driven by regulation, technology, demographics and shifting employee expectations. Many feared that the Two-Pot Retirement System would lead to widespread withdrawals, for example, and it has, but access to information has also increased employee engagement with retirement planning. When employees understand their finances better, they use existing workplace benefits and pensions in a more effective manner. Employers and IFAs should be focusing far more on financial education, helping employees understand when accessing savings is appropriate and when preservation is the better long-term choice. This intervention can directly impact workforce

Integrated employee benefits Rather than treating retirement, risk cover, medical aid and wellness programmes as separate products, leading employers are designing benefits around improving employees’ overall financial security. Reputable IFAs have the tools to curate a portfolio of relevant and interlinking products, which may be mutually beneficial; e.g. financial literacy leads to employees being open to exploring critical illness cover, which alleviates anxiety caused by insufficient medical aid, which prevents potential loss of income when ill, which can mean not having to reduce or dip into retirement savings in order to cover unforeseen medical costs. Research has shown that by upskilling employees, productivity and employee retention improve.

Independent Financial Adviser, Momentum Consult: Fairland

Greater flexibility in group risk benefits Historically, all employees received similar cover regardless of age or life stage. Increasingly, employers are allowing employees to tailor benefits to their own circumstances. IFAs are not tied to any specific products, enabling them to analyse, plan and advise on financial programmes without prejudice. Allowing employees to customise their benefits based on their personal needs optimises corporate spending without destroying the overall value proposition. It also delivers a valuable tool for employers as part of a recruitment strategy. Many benefit structures previously prioritised death and funeral benefits, yet employees are statistically more likely to experience disability than death during their working careers. As a result, temporary disability, permanent disability, rehabilitation and return-to-work programmes are receiving much greater attention. Employees then have a financial bridge to fund recovery and allow for reintegration into the workforce. It also plays an important role in employers safeguarding any earning potential. The bottom line The employee benefits industry is moving in a positive direction. The focus is shifting away from selling one-size-fits-all insurance products toward helping employees achieve long-term financial resilience and retirement security. Ultimately, success should be measured by the retention of employees who are financially secure, engaged and better prepared for retirement.

Extended sick leave requires more than good intentions

recovery, and generate uncertainty about job security. Employers may face inconsistent decisions, employee relations challenges, and greater exposure to long-term disability claims. Discretion allows cases to be assessed individually, considering the medical condition, prognosis, length of service and operational impact. However, clear criteria are needed to ensure decisions are fair and consistent.

A commonly misunderstood benefit Extended sick leave is not usually an automatic entitlement. It is often discretionary and considered only after ordinary sick leave has been exhausted. Employees may also be required to use annual leave before receiving additional support. Without clear processes, this can create financial strain, delay

Part of a wider framework Extended sick leave should be integrated with incapacity processes, disability claims, return-to-work planning, and wellbeing support. Managing these elements in silos can leave employees with fragmented assistance and make oversight difficult. Connecting them supports better outcomes and more effective risk management. A well-defined policy should explain eligibility, required documentation, approval authority, review periods, and how exceptions are handled. It should clarify whether leave is paid, partially paid or unpaid, and whether limits apply. Medical evidence is important, but decisions should consider functional impact rather than diagnosis alone.

By Paresha Kala

Senior Manager, Alexforbes Health Management Solutions

xtended sick leave affects employee wellbeing, business continuity and risk. As health conditions become more complex and prolonged, how employers manage absence can influence recovery, productivity and organisational resilience. A review of practices across 24 Health Management Solutions organisations found that just over half have a formal arrangement: 54% provide a structured extended sick leave benefit, 4% apply an ex-gratia once-off arrangement, and 42% offer no extended sick leave.

Employers should assess an employee’s ability to perform their role, whether adjustments are possible, and whether a structured return-to-work plan is appropriate. This can encourage earlier intervention and improve the likelihood of a successful return. The value of data and communication Organisations should monitor extended sick leave alongside broader absence and health data, including duration, repeat cases, disability outcomes, and returnto-work success. Identifying patterns can highlight where early intervention, manager support or policy changes are needed. Clear communication is important. Employees need to understand available support, documentation requirements and timelines. Consistent processes promote fairness, reduce disputes, and strengthen the defensibility of difficult decisions. Managers should receive practical guidance, as they are often the first point of contact. Ultimately, extended sick leave should be compassionate, structured and sustainable – balancing employee needs with clinical evidence and operational requirements.

www.moneymarketing.co.za // 17

EMPLOYEE BENEFITS // AUGUST 2026

How a portfolio can grow for years – and still fail a member at retirement

retirement fund member can do almost everything right – save consistently, stay invested and benefit from longterm market growth – yet still retire with less income security than expected if markets fall when they need to withdraw, transfer or start drawing an income. That is the uncomfortable reality of timing risk, and it is becoming one of the most important member-outcome challenges facing retirement funds, employers and advisers. Global shocks can quickly ripple from oil, currency and interest-rate markets into transport costs, food prices, employer budgets and household finances. For retirement funds, market volatility is no longer just an investment concern; it can influence members' financial wellbeing and the decisions they make about retirement, preservation and access to savings. For members, these forces are tangible. They may mean higher living costs in retirement, pressure on household budgets, and greater sensitivity to the timing of retirement, withdrawals or income drawdowns. "Retirement fund design should not focus only on long-term return targets," says Fred van der Vyver, Executive Head of Product Solutions at Old Mutual Corporate. "It should also consider the journey members experience on the way to retirement, and whether that journey is designed to reduce the impact of timing when it matters most." He describes this as one of retirement saving's more uncomfortable truths. Two members can save consistently, stay invested and follow the same plan, yet retire with very different outcomes simply because they leave the workforce at different points in the market cycle. "A member may save consistently over decades, remain invested and still end up with a poorer outcome simply because retirement happens during a period of market stress," he says. "That is a member-outcome risk that trustees, employers and advisers need to manage actively." Why timing risk changes the advice conversation For employee benefit consultants, timing risk creates an important client conversation. A fund may meet its long-term return objective and still disappoint individual members when they retire, transfer, withdraw, preserve, or start drawing an income during a period of market stress. “Members do not experience returns as long-term averages over rolling periods. They experience them at the moments that define their outcomes,” says Van der Vyver. This means the advice conversation is shifting from “Which portfolio performed best?” to “Which design gives members the best

18 // www.moneymarketing.co.za

chance of reaching retirement with the highest degree of confidence?” The more useful question is whether the fund’s investment design exposes members to the full impact of adverse market conditions at the exact point they need These figures are illustrative, based on specific assumptions, and do not represent to act, or whether guaranteed outcomes. This is based on someone investing a R1m lump sum from 1 April it is designed to 2007 and exit is end-March 2026. Comparison is between AGP Smooth and AF Global LMW BIV median fund return. help members stay Source: Old Mutual Corporate Investment Solutions exposed to growth while also managing timing risk more deliberately through time. manages it and changes how it’s experienced. “Markets can deliver long-term growth, but the In stronger markets, part of the return may path to those returns is becoming more uneven,” be held back in a Bonus Smoothing Reserve. says Van der Vyver. “Members do not exit on In weaker markets, that reserve may support average. They retire at a specific point in time.” declared bonuses. This helps reduce the The chart illustrates why the path of returns impact of market shocks at critical moments matters, not only the long-term target. Members like retirement, withdrawal, or income do not retire on averages; they retire, withdraw, drawdown. In simple terms: smoothing turns a transfer, or start drawing income at a specific jagged investment journey into a steadier one. point in time. Smoothing is designed to help The underlying portfolio remains growthmoderate the range of outcomes members oriented, with about 83% exposure to experience at these key decision points. At the growth assets, alongside global multi-asset end of March 2026, an investor in AGP Smooth strategies, alternative assets, and multiple was 20% better off than an investor in a typical equity manager styles. Certain portfolios also balanced fund – due to the Middle-East war include capital protection features, such as an induced market downturn taking place in the 80% guarantee in AGP Stable at exit due to same month as the retirement event. This shows a benefit event. “The objective isn’t to remove the same investment time period with the same risk from retirement investing,” Van der Vyver investment discipline, but massively different says. “Without appropriate investment risk, investor outcomes. members won’t achieve the real long-term growth they need. The goal is to deliver growth Why clients need to look beyond headline returns while reducing short-term market shocks’ Members need growth exposure to build impact on member outcomes.” long-term income security. But growth alone For consultants, the value lies in explaining is insufficient if members bear the full force how growth exposure and member-outcome of market shocks at critical moments. For protection work together, rather than as consultants, this changes how value is delivered opposing choices. “The future of retirement to clients. Better retirement investment design is fund design will be judged by whether about assessing whether growth is delivered in a members could convert those returns into way that keeps members exposed to long-term real income security when it mattered,” says opportunities while reducing the risk of adverse Van der Vyver. For trustees, employers, and conditions undermining their income security. advisers, that means asking a better question: This has sharpened the focus on investment not only what return did the portfolio earn, but designs that broaden return sources across listed how well was the investment journey designed and unlisted assets, increase exposure to growth to manage timing risks?” assets, and manage the return path through For the full picture on Old Mutual Corporate’s thinking on changing market conditions. retirement reform, fund design and improving member Old Mutual Corporate’s Smoothed Bonus outcomes, visit www.oldmutual.co.za/corporate/resourceportfolios, including the Absolute Growth hub/all-articles/reshaping-south-africas-retirement-fundindustry/ Portfolios, combine diversified exposure across Visit www.oldmutual.co.za/employeebenefits for more asset classes with smoothing mechanisms to information on our full range of employee benefits. reduce market uncertainty’s impact on members. Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer. Smoothing doesn’t remove investment risk but

EMPLOYEE BENEFITS

INCOME SECURITY IS MORE THAN A TARGET. IT’S A JOURNEY A good retirement outcome depends on more than long-term performance. It also depends on how the investment journey through market ups and downs plays out when retirement fund members need their money. For advisers and intermediaries, this means helping clients look beyond performance alone to fund design that supports stronger member outcomes. Old Mutual Absolute Growth Portfolios (AGP) target above-inflation returns over the long term, with smoothing designed to help moderate outcomes at key decision points. At the end of March 2026, AGP Smooth members were 20%* better off than those invested in a typical balanced fund who exited in the same month. That’s the benefit of seeing the whole picture. Partner with Old Mutual Corporate to support stronger long-term retirement outcomes for your clients. Visit www.oldmutual.co.za/retirementinvestments www.oldmutual.co.za/smoothedbonus

OUR EMPLOYEE BENEFITS

Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer *Source: Old Mutual Corporate Investment Solutions.

COLLECTIVE INVESTMENT SCHEMES // AUGUST 2026

CAM ManCo: Enabling fund managers to focus on what they do best

n the increasingly complex South African (SA) financial landscape, asset managers face a relentless dual challenge: the pressure to generate alpha in volatile markets, and the mounting burden of navigating an ever-changing regulatory and administrative environment. For many, the weight of compliance, fund accounting and reporting can become a significant distraction from their core mandate of managing money and fostering client relationships. Recognising this need for specialised support, the Citadel Group has announced the rebranding of its established H4 Collective Investments (RF) (Pty) Ltd as CAM ManCo (RF) (Pty) Ltd. While the name has changed to align with the broader asset management retail offering, the business remains anchored by the same experienced team, robust systems and processes, and high regulatory standards that have defined its success since 2013.

“Our core focus is the management of collective investment schemes, which are both highly regulated and operationally complex”

20 // www.moneymarketing.co.za

A new chapter for an established partner The transition to CAM ManCo marks a strategic evolution. Originally founded to service Citadel-specific funds and clients, the business has spent over a decade building the infrastructure necessary to handle the intricacies of collective investment schemes (CIS) at scale. Philip Bredenhann, Managing Director of CAM ManCo, explains the timing of this brand alignment: “We believe the time is right to extend our offering to the wider retail investment market – Independent Financial Advisors (IFAs) and their clients through Linked Investment Service Provider (LISP) platforms – because we have built up a strong portfolio, and we have the exceptional capabilities and infrastructure in place to meet broader investor needs.” Solving the ‘alpha versus admin’ struggle For asset and fund managers, the value proposition of CAM ManCo is rooted in operational relief. CIS managers are governed by a comprehensive regulatory framework that requires extensive administration and is often expensive to manage in-house without significant scale. CAM ManCo acts as a professional partner, providing a comprehensive ‘allinclusive package’ of services. This includes a regulated CIS platform, governance and compliance oversight, fund accounting and transfer agency services – covering everything from unit holder records and bank reconciliations to FICA requirements and income distributions. “Our core focus is the management of collective investment schemes, which are both highly regulated and operationally complex. Investment managers are rightly focused on managing money and servicing clients, and often do not have

the time, scale or specialist infrastructure required to manage the associated risks effectively. These include regulatory compliance, valuation, tax, reporting and operational risks. For CAM ManCo, these are our areas of specialisation,” says Bredenhann. Tailored support without losing your identity A critical benefit for managers using the CAM ManCo platform is the ability to maintain their own market identity. Investment managers can take their products to market under their own brand while outsourcing the operational and regulatory responsibilities to CAM ManCo. CAM ManCo also offers the flexibility to work with multiple service providers, accommodating a manager’s invaluable existing relationships with prime brokers or banks where possible. This allows for a seamless transition onto the platform without disrupting established workflows. As Bredenhann notes: “Our clients leverage our exceptional systems, processes and people to access all the operational, administrative, compliance and reporting support they need in order to serve their clients properly.” Trust built on scale and integrity With R57bn in assets under management across 22 portfolios, CAM ManCo brings a proven track record to the table. The team's experience spans equity, money market, bond and fixed-income funds, as well as specialised hedge fund administration for both Retail and Qualified Investor schemes. Ultimately, the rebranding is about more than just a new logo; it is about the continuity to safeguard investor savings through ethical, transparent and compliance-led management. “Our credibility comes from the calibre of our people; all our people take their responsibility to help protect and grow the savings of investors extremely seriously. This is why we have a proven track record since 2013, and why we’ve managed to achieve such a large volume of assets under management. The CAM Manco team could not have achieved any of this without continually earning the trust of its clients and the regulators,” Bredenhann concludes. Information and disclosures relating to CAM Manco (RF) (Pty) Ltd and its portfolios can be found at https://cam.co.za/cam-manco-general-disclaimer/ CAM ManCo (RF) (Pty) Ltd is registered by the Financial Sector Conduct Authority (FSCA) as a manager of collective investment schemes in terms of the Collective Investment Schemes Control Act (CISCA), 2002.

AUGUST 2026 // COLLECTIVE INVESTMENT SCHEMES

Building portfolios that deliver more than a favourable cycle

oneyMarketing spoke to the experts at Symmetry to find out more about their approach towards collective investment schemes.

Image: Getty Images

What criteria do you use to select collective investment schemes for your portfolio, and how do you weigh factors like fund manager track record, fees and fund size against each other? We don’t select collective investment schemes (CIS) based on any single factor. Instead, we apply a holistic due diligence framework that assesses the quality, repeatability and suitability of a fund within the context of our broader portfolio objectives. Our primary focus is on the investment team and process, including the manager’s track record across different market environments, the consistency of outcomes delivered, and evidence that performance is driven by skill rather than favourable market conditions or excessive risk-taking. We also assess portfolio construction, risk management, governance, organisational stability and capacity constraints. Fees are an important consideration, but they are evaluated relative to the value delivered. We favour managers who can consistently justify their costs through superior risk-adjusted returns, diversification benefits and strong execution. Fund size is similarly assessed from both a scalability and flexibility perspective, as excessively small or large funds can face operational or investment challenges. Ultimately, our objective is to identify managers capable of delivering sustainable long-term outcomes for investors. Given the growing range of CIS categories available to South African investors, how do you determine the right mix for different risk appetites and investment horizons? While the CIS universe has expanded significantly over time, our portfolio construction philosophy has remained consistent. It is built on diversification, specialist expertise, disciplined asset allocation, and a focus on delivering the outcomes investors require over appropriate investment horizons. Our multimanaged strategies are designed to meet a broad range of risk and return objectives. We recognise that different CIS categories, whether income, bond, multi-asset or global equity funds, each play a distinct role within a portfolio rather than being viewed in isolation. These building blocks are combined in different ways to balance return objectives and risk budgets, giving investors the highest probability of achieving their desired outcomes. The growing range of CIS options ultimately expands the opportunity set available to us, enabling more precise portfolio construction and access to a wider range of return drivers and diversification benefits.

How do you assess whether a fund’s performance is driven by genuine manager skill rather than simply riding a favourable market cycle, and what benchmarks do you consider most meaningful when evaluating CIS returns? When assessing manager performance, it is important to look beyond short-term returns and determine whether outcomes are supported by a repeatable investment process and genuine investment skill. A key part of our analysis is assessing whether a manager’s realised returns are consistent with the philosophy, process and portfolio positioning they describe. We want to understand not only what returns were delivered, but how those returns were generated and whether they can reasonably be repeated in the future. Our evaluation typically focuses on five areas: • Risk-adjusted returns: Whether excess returns have been generated efficiently relative to the level of risk taken. • Downside protection: How the strategy performs during periods of market stress and capital drawdowns. • Consistency through market cycles: Whether performance has been delivered across a range of market and economic environments rather than during a single favourable period. • Style and holdings-based analysis: Whether portfolio exposures, security selection and factor tilts are consistent with the manager’s stated investment philosophy and explain the outcomes achieved. • Repeatability of process: Whether outcomes can be linked to a disciplined and consistently applied investment philosophy and process rather than relying on market tailwinds or one-off decisions.

“We apply a holistic due diligence framework that assesses the quality, repeatability and suitability of a fund” Performance is evaluated relative to multiple reference points, including the fund’s stated benchmark, relevant ASISA category peers and, where appropriate, inflation-linked or cash-plus objectives. Taken together, these measures provide a more complete assessment of whether a manager is creating value through skill and a repeatable investment approach, rather than simply benefiting from a favourable market cycle. With the FSCA’s continuously changing regulatory framework and the role of ASISA in promoting transparency, have you seen any

changes in how CIS managers disclose costs and risks, and has that influenced your decisionmaking as an investor? The various transparency initiatives introduced by regulators and industry bodies have benefited both investors and manager research practitioners. From Symmetry’s perspective, these developments have improved our ability to assess managers and compare investment solutions on a more consistent basis. Firstly, the introduction of separate MDDs for individual fee classes allows us to evaluate managers using clean fee classes that exclude retail platform and advisory charges, providing a clearer assessment of underlying investment skill. Secondly, enhanced transaction cost disclosures provide greater transparency into trading activity and implementation efficiency. This enables us to better understand the impact of portfolio turnover and identify instances where trading costs may detract from investor outcomes. Finally, improved look-through reporting across multi-asset and offshore structures has enhanced our ability to analyse underlying exposures, compare managers on a like-for-like basis, and evaluate performance both gross and net of fees. Overall, these developments have strengthened our due diligence process and improved the quality of information available for investment decision-making. How are you using CIS, particularly offshore and multi-asset funds, to achieve genuine diversification rather than just ticking a box? Concentration risk is not unique to South Africa. While the local market has historically exhibited significant exposure to a relatively Continued on next page...

www.moneymarketing.co.za // 21

COLLECTIVE INVESTMENT SCHEMES // AUGUST 2026 Continued from previous page

small number of sectors and companies, global managers with different investment styles, markets have recently become increasingly insights and areas of expertise across both concentrated in large technology and AIlocal and global markets, helping to reduce related businesses. Effective diversification concentration risk at the sector, country and therefore requires a broader approach than security level. Global and multi-asset CIS simply allocating capital offshore. solutions provide an efficient mechanism At Symmetry, diversification is embedded through which these asset allocation and within our asset allocation and portfolio diversification decisions can be implemented. construction process. Our approach is datadriven, drawing on long-term historical Looking ahead, what trends do you think relationships between asset classes, while will shape the CIS landscape over the next also incorporating valuation-based views and few years – and how are you positioning a belief in mean reversion over time. Longyourself accordingly? term expected outcomes inform the strategic We expect three themes to have a meaningful allocation between growth and income assets, impact on the CIS landscape. The first is the as well as local and global exposures. continued growth of passive and factor-based Tactical adjustments may then be made investing. As investors become increasingly when compelling valuation opportunities fee-conscious and outcome-focused, demand arise. For lower-risk portfolios, local income for index-tracking and smart-beta solutions assets have historically been sufficient to meet is likely to increase. However, we believe investor objectives. As risk tolerance increases, active management will continue to play an a greater allocation to growth assets and important role in less efficient markets, such offshore exposure becomes appropriate, with as South African equities, credit and certain more growth-oriented portfolios typically alternative asset classes where manager skill requiring meaningful global diversification. can still add meaningful value. The second is A further layer of diversification is achieved growing demand for differentiated sources of 20134 Prescient Money Marketing Half Page Print.pdf 1 2026/07/10 5:30 PM through manager selection. We combine return and diversification. In an environment of

CMY

22 // www.moneymarketing.co.za

lower expected returns, elevated market concentration and ongoing macroeconomic uncertainty, investors are increasingly looking beyond traditional asset classes. This is likely to support greater interest in alternative investments, private markets, income solutions and diversified multi-asset portfolios. The third is an increasing focus on regulation, governance and transparency. Investors and regulators are placing greater emphasis on product suitability, cost disclosure, ESG integration and value for money, reinforcing the need for robust reporting and clear communication. To position ourselves for these developments, we continue to invest in our manager research and portfolio construction capabilities, broaden our opportunity set across both traditional and alternative asset classes, and strengthen our responsible investment and stewardship frameworks. We remain focused on building outcome-oriented solutions that utilise both active and passive building blocks where appropriate, with the objective of delivering strong long-term investor outcomes rather than being aligned to any single investment style.

AUGUST 2026 // COLLECTIVE INVESTMENT SCHEMES

Why SA's fund rules must catch up with active ETFs and tokenisation

outh Africa's collective investment scheme (CIS) industry is one of the country's quiet success stories. Over three decades, unit trusts have opened professional By Kristy Jacobs investment Client Director at management to Prescient Investment ordinary savers and Management helped millions build long-term wealth, all under the protective framework of the Collective Investment Schemes Control Act (CISCA) of 2002. But the industry now sits at a crossroads. Two innovations reshaping global asset management, actively managed exchangetraded funds (AMETFs), and tokenised funds, are testing rules that were written for a slower, paper-based world.

Image: Getty Images

The rise of active ETFs ETFs used to mean passive: cheap, transparent index exposure. Not anymore. Active ETFs are among the fastest-growing parts of global asset management, and managers such as BlackRock, JPMorgan, Fidelity and T Rowe Price have embraced them. For the investor, an active ETF and a traditional unit trust are increasingly the same thing in different clothing. The same manager can run an identical strategy in both, but one trades on exchange, settles faster and costs less to hold, so investors gravitate to the more flexible wrapper. In South Africa, active ETFs have arrived more slowly than in developed markets; not for lack of demand but because of regulatory complexity and market structure. That raises the central question: should our rules regulate the wrapper, or the investor-protection principles underneath it? Tokenisation, and why South Africa is ready Tokenisation is the bigger shift. Instead of units recorded through a transfer agent, an investor holds a cryptographically secured token that represents the same interest in the fund. The economic exposure is identical; only the ownership plumbing changes. BlackRock, Franklin Templeton, JPMorgan and UBS have all launched tokenised products, because a shared ledger takes cost and delay out of settlement, reconciliation and record-keeping. South Africa is well placed to follow, with deep institutional markets, strong custody, advanced payment systems and regulators willing to

engage. The FSCA has already declared crypto assets financial products and brought crypto asset service providers under supervision [FSCA], and the Reserve Bank's Project Khokha 2 has tested the tokenised issuance and settlement of debentures on distributed ledger technology [SARB]. The logical next step is to treat a tokenised fund as what it is: a collective investment scheme, where segregation of assets, independent custody, valuation oversight and conduct standards all still apply. Only the register changes.

far less. In practice that means legislation defined by economic substance rather than by wrapper; a single framework spanning unit trusts, ETFs and tokenised funds; legal recognition of digital ownership records; faster approval routes and a supervised sandbox for new structures; and alignment with international standards so local products can attract global capital. None of this is a contest between unit trusts, ETFs and tokenised funds. They are converging, and before long the distinction will be invisible to the people who matter: investors, who care

“The answer is a principlesbased regime built on one idea: regulate risk, not technology” The rules were built for another era The obstacle is that CISCA was designed for a different world. It is highly prescriptive about structures, administration and operations [gov.za]. That prescription buys certainty, but it also raises the barrier to innovation: long approval times, several regulators to satisfy, unclear treatment of new technology, and little flexibility in how ownership and distribution work. Those costs end up with the investor, and they push managers to innovate offshore rather than at home. Regulate risk, not technology The answer is a principles-based regime built on one idea: regulate risk, not technology. Whether a saver buys a unit trust, an active ETF or a tokenised fund, the questions are the same. Are client assets protected? Is disclosure adequate and pricing fair? Is liquidity managed, are conflicts of interest controlled, and is governance sound? If the answers are yes, the delivery mechanism should matter

about access, cost, liquidity, transparency and returns. Active ETFs and tokenised funds are going mainstream regardless. The only real question is whether South Africa's rules will move quickly enough for local investors to share fully in the benefits. Disclaimer: Prescient Investment Management (Pty) Ltd is an authorised Financial Services Provider (FSP 612) in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS). The information in this document is provided for general information purposes only and is not intended to constitute financial advice (as defined in FAIS), investment advice, a recommendation, or an invitation/offer to issue, sell, subscribe for, or purchase any financial product. Any views or opinions expressed are those of the author (unless otherwise stated) and may change without notice. Past performance (if referenced) is not necessarily indicative of future performance, and no guarantee is given as to future returns. While reasonable care has been taken in preparing this document, no representation or warranty (express or implied) is made as to the accuracy, completeness, or fairness of the information, and Prescient Investment Management (Pty) Ltd and its affiliates disclaim liability for any loss, damage, cost, or expense (whether direct, indirect, or consequential) arising from reliance on this information. This document may contain proprietary material and is protected by copyright law. For more information visit www.prescient.co.za

www.moneymarketing.co.za // 23

SHARI’AH INVESTING // AUGUST 2026

How a 30-year Shari’ah-compliant framework is shaping investing

hirty years ago, Shari’ah Camissa Asset investing was Management viewed as restrictive, yet today it increasingly aligns with mainstream approaches to sustainability and long-term value creation. Principles such as prohibiting excessive corporate leverage and speculation, prioritising real economic activity, and considering social impact are now recognised as forward-thinking by mainstream investors. Islamic finance has become a global force, with assets reaching $5.98tn in 2024 and projected to exceed $9.7tn by 2029, reshaping capital allocation worldwide. Its appeal extends well beyond religious obligation. By mandating low leverage, prohibiting speculative excess and requiring tangible asset backing, Shari’ah screening enforces the prudent disciplines that conventional investors associate with quality factor investing. In an era of elevated debt and aggressive financial engineering, these structural safeguards have delivered measurable improvements in risk-adjusted returns.

By Abdul Davids

Is performance constrained or advantaged? Shari’ah strategies have long faced scepticism based on the premise that restricting investing must impair returns. However, data tells a different story. The S&P 500 Shari’ah Index comprises approximately 230 constituents that meet AAOIFI screening criteria. By excluding banks, insurers and highly indebted firms, the index exhibits higher exposure to technology, healthcare and consumer-oriented sectors. As shown in the top table, Shari’ah indices outperformed in six of seven years. The 2022 exception reflected rising interest rates, which triggered selloffs in technology shares and disproportionately affected growth-oriented Shari’ah portfolios. Even then, the absence of bank stocks – which suffered significant unrealised bond losses, culminating in the Silicon Valley Bank collapse – provided important downside mitigation. In 2025, major Shari’ah exchange-traded funds (ETFs) continued outperforming, with top performers delivering 26.37% versus the S&P 500’s 17.72%. The Sukuk market: Fixed-income growth Sukuk – Islamic bonds representing ownership in tangible assets rather than conventional debt – have experienced exceptional growth. The global market surpassed $1tn in outstanding issuances in 2025, with annual issuance reaching a record $264.8bn, up from $234.9bn in 2024. This is the result of several structural factors: GCC countries’ financing needs for Vision 2030 and economic diversification; lower global rates making Sukuk issuance cost-effective; and foreign-currency Sukuk volumes doubling since 2021. From a credit perspective, Sukuk markets demonstrate notable stability. According to

24 // www.moneymarketing.co.za

Fitch ratings, 93.6% of Sukuk issuers maintained stable outlooks in 2023, while defaulted Sukuk accounted for just 0.2% of outstanding issuance – remarkably low by any fixed-income standard. Balance sheets still matter The Shari’ah requirement that debt remain below 30-33% of market capitalisation or total assets is prudent risk management delivering measurable advantages. Research from Stern Value Management confirms operating, financial and total leverage correlate negatively with shareholder returns during crises: -0.58, -0.51, and -0.60 respectively. The mechanism is straightforward: highly leveraged companies face rising interest costs, tightening credit and diminishing ability to service debt. Firms with conservative balance sheets retain operational flexibility, continue investing through downturns and avoid distressed-debt spirals. As highlighted in the lower graph, companies with low leverage outperformed highly levered companies by a substantial margin during the global financial crisis as well as the Covid-19 pandemic period. Looking ahead 30 years, this advantage is likely to intensify. Ultra-loose monetary policy is ending, fiscal constraints are tightening across developed markets, and the green transition requires massive capital deployment. Selffunding growth, weathering volatility and avoiding refinancing risk is critical. Shari’ah screening excludes the most vulnerable companies before crises arrives. For South African retirement funds focused on member outcomes over three decades, this protection warrants serious consideration. Forward-looking prospects Several trends suggest that Shari’ah-compliant investing will strengthen over the next 30 years.

Geopolitical capital flows: Continued wealth accumulation across the Islamic world – Saudi Vision 2030, UAE diversification, Indonesia’s rising middle class, and Malaysia and Gulf expansion – represents capital pools exceeding $9.7tn by the close of the decade. South African managers with credible Shari’ah capabilities can access these flows. ESG convergence: As ESG integration becomes standard, Shari’ah screening identifies sought characteristics such as sustainable business models, ethical practices, stakeholder consideration and long-term orientation. For South African retirement funds under Regulation 28’s sustainability requirements, Shari’ah compliance addresses similar concerns through a more time-tested framework. Technology positioning: Shari’ah’s exclusion of conventional financials and highly leveraged businesses results in a structural overweight in technology, healthcare and consumer sectors – industries poised to define the next three decades. Growth areas such as artificial intelligence (AI), biotechnology, clean energy and digital infrastructure are well-represented in Shari’ah indices. These companies are building the future.. Strength in simplicity: Shari’ah’s prohibition on complex derivatives and opaque structures shifts the focus toward businesses that generate returns through operational excellence. In a world where accounting complexity often obscures true business quality, the emphasis on simplicity and transparency is valuable. Ancient principals, future-proof investing The investment world of 2056 will demand frameworks capable of navigating uncertainty, identifying quality amid complexity, and compounding wealth across cycles. Shari’ahcompliant investing offers precisely this.

Total annual returns: Shariah vs conventional (2019-2025)

“The relevancy of Shari’ahcompliant investing will strengthen over the next 30 years”

Source: Bloomberg, Camissa Asset Management

Crisis performance: low vs high leverage companies

Source: Bloomberg, Camissa Asset Management

Baillie Gifford Worldwide Islamic Global Equities Fund

Long-term, active ownership. Most Shariah-compliant investing works by exclusion. We work by engagement – presenting scholars with detailed analysis of how businesses actually operate, not just where they sit on a checklist. It’s how a company like Shopify moved from excluded to investable. Long-term, active ownership, within a Shariah-compliant universe. Capital at risk.

Scan the QR code to find out more

Baillie Gifford Overseas Limited (BGO) provides investment management and advisory services to non-UK Professional/Institutional clients only. BGO is wholly owned by Baillie Gifford & Co. Baillie Gifford & Co and BGO are authorised and regulated by the Financial Conduct Authority in the UK. BGO is licensed with the Financial Sector Conduct Authority in South Africa as a Financial Services Provider.

SHARI’AH INVESTING // AUGUST 2026

The next decade of Shari’ah investing in South Africa: Five trends

he South African Wealthvest Investment investment Management landscape is undergoing a profound transformation. While investors continue to seek competitive longterm returns, an increasing number are also asking an important question: How are those returns being generated? This shift has placed ethical, responsible and Shari’ah-compliant investing firmly in the spotlight. Once regarded as a niche segment of the market, Shari’ah investing is increasingly being recognised as a disciplined investment philosophy that combines financial prudence with strong ethical foundations. Built upon principles of fairness, transparency, responsible ownership and real economic activity, Shari’ah investing excludes businesses involved in activities such as conventional interest-based banking, alcohol, gambling, tobacco, adult entertainment and weapons manufacturing. It also applies strict financial screening to avoid companies with excessive debt or significant interest-based income. Importantly, these principles are resonating with a far broader audience than Muslim investors alone. Around the world, many investors are embracing Shari’ah-compliant strategies because they align closely with the growing demand for responsible investing, sound corporate governance and long-term sustainability. As South Africa’s investment industry moves forward, five key trends are likely to shape the next decade of Shari’ah investing.

By Muhammad Paruk

Values will become as important as returns Today’s investors increasingly want their investments to reflect their personal beliefs and values. For many, wealth creation is no longer viewed purely through the lens of financial performance. Investors are seeking portfolios that deliver sustainable long-term growth while remaining consistent with their ethical principles. Shari’ah investing naturally meets this growing demand by providing a disciplined framework that combines financial analysis with ethical screening. Rather than simply avoiding prohibited sectors, Shari’ah investing encourages investment in businesses that contribute positively to society through productive economic activity, responsible governance and sustainable business models. As younger generations inherit wealth and become more active investors, demand for values-based investment solutions is expected to accelerate significantly.

Ethical investing will continue to move into the mainstream The global rise of Environmental, Social and Governance (ESG) investing has demonstrated that investors increasingly recognise the

26 // www.moneymarketing.co.za

relationship between responsible business practices and long-term financial performance. Shari’ah investing complements many of these objectives while providing an additional layer of financial discipline. The prohibition of excessive leverage encourages investment in financially resilient companies with stronger balance sheets, while the exclusion of speculative activities promotes a focus on businesses supported by genuine economic value. Although founded upon Islamic principles, these characteristics increasingly appeal to investors from diverse backgrounds who seek transparent, disciplined and ethically managed investment portfolios. Rather than competing with responsible investing, Shari’ah investing is becoming an increasingly important component of the broader ethical investment landscape.

Technology makes Shari’ah investing more accessible Technology is transforming every aspect of financial services, and Shari’ah investing is no exception. Digital investment platforms, automated portfolio management, artificial intelligence and enhanced financial screening tools are making it easier than ever to identify, construct and monitor Shari’ahcompliant portfolios. Investors now expect digital onboarding, real-time portfolio reporting and seamless engagement with advisers, while investment managers benefit from increasingly sophisticated screening methodologies that continuously assess compliance with Shari’ah principles. Technology also enables greater transparency by allowing investors to better understand why particular companies qualify for inclusion within a Shari’ah-compliant portfolio. While technology enhances efficiency, investment decisions continue to require experienced human judgement, particularly when interpreting changing market conditions and assessing business quality over the long term.

Alternative investments will expand the Shari’ah investment universe Historically, Shari’ah-compliant investors often faced a narrower investment universe than conventional investors. That landscape is changing rapidly. Growing opportunities within private equity, infrastructure, renewable energy, healthcare, logistics and private markets are creating attractive opportunities that align well with Shari’ah investment principles. South Africa’s infrastructure requirements and ongoing energy transition present particularly compelling opportunities for patient, long-term capital. Real assets that generate productive

economic activity are well aligned with the principles of Islamic finance, offering investors both diversification and the opportunity to contribute to broader economic development. As the local Islamic finance industry matures, greater innovation is expected across Shari’ahcompliant collective investment schemes, private market solutions and alternative investment products.

Trust and governance will define successful investment managers At the heart of Islamic finance lies the principle of trust. Investors increasingly expect more than competitive returns. They want transparency, integrity, strong governance and confidence that their investments genuinely comply with the principles they have chosen to follow. This makes robust Shari’ah governance increasingly important. Independent Shari’ah supervision, disciplined compliance monitoring, transparent reporting and consistent portfolio oversight provide investors with confidence that investment decisions remain aligned with established Islamic principles. At the same time, strong corporate governance, effective risk management and clear communication continue to distinguish leading investment managers. In a world where information is abundant but trust is increasingly scarce, integrity may become the industry’s greatest competitive advantage. Looking ahead Shari’ah investing in SA is entering an exciting period of growth and evolution. What was once viewed primarily as a faith-based investment solution is increasingly recognised as a sophisticated, disciplined and globally relevant approach to long-term wealth creation. Its emphasis on ethical business practices, prudent financial management, responsible ownership and sustainable economic activity aligns closely with many of the challenges and opportunities currently shaping modern investment markets. As investor expectations continue to evolve, Shari’ah investing is well positioned to play an increasingly important role within South Africa’s broader asset management industry. Ultimately, successful investing is about more than building wealth. It is about preserving capital responsibly, participating in productive economic growth, and creating lasting value for individuals, families and communities. The next decade presents a significant opportunity for Shari’ah-compliant investing to move from the margins to the mainstream – demonstrating that strong ethics and strong investment outcomes are not mutually exclusive but can be powerful partners in achieving long-term financial success.

AUGUST 2026 // BEHAVIOURAL FINANCE

How behavioural biases shape investment decisions

Image: Getty Images

he human brain is not Head of Clarity wired for by Investec investing. It is wired for survival – for fleeing danger, following the crowd and holding on to what it has. Small wonder, then, that the same instincts that once kept our ancestors alive now conspire to sabotage portfolios. MoneyMarketing spoke to Tinus Rautenbach, Head of Clarity by Investec, for some more insight on client behaviour when it comes to investing.

How can financial advisers use behavioural finance principles to help clients stay committed to long-term investment strategies, especially during periods of market volatility? Advisers can play a valuable role by helping clients focus on what they can control rather than what they can’t. An adviser isn’t there to eliminate volatility – they are there to help clients navigate it with confidence. They can do so by providing context around market movements and reinforcing the importance of diversification.

How do common behavioural biases, such as overconfidence, herd behaviour and loss aversion influence investment decisions across different demographics, and what strategies can mitigate their impact? Behavioural biases affect every investor, regardless of their age or experience. Overconfidence can lead investors to trade more frequently or take on more risk than they realise, while herd behaviour sees people buying or selling simply because everyone else is doing the same. Loss aversion is another common bias, where the fear of losing money outweighs the satisfaction of making a gain. This can result in investors holding on to underperforming assets for too long, or selling during downturn out of fear. Research shows that people tend to feel the impact of losses more intensely than gains of the same value, which explains why emotions have such a powerful influence on investment decisions and behaviour. The best way to overcome these biases is by having a clear investment strategy.

South African research consistently finds male investors are more risk tolerant than their female counterparts. But is risk aversion in women a symptom of other biases – like loss aversion or regret aversion – or simply a lack of familiarity with investment products? Risk tolerance is influenced by many factors, including experience, confidence and financial knowledge, rather than gender alone. While studies often suggest women take a more measured approach to investing, that shouldn’t automatically be interpreted as a weakness. In many cases, taking more time to research decisions and avoiding unnecessary trading can produce better long-term outcomes. The proof is in the pudding. A Fidelity Investments study of more than five million accounts found that women outperformed men by around 0.4% per year over a decade, largely because they traded less frequently and maintained a stronger long-term focus. There is a tendency to confuse patience with caution, but they’re not the same thing. In investing, patience is often one of the greatest strengths an investor can have.

Tinus Rautenbach

What role does emotional decision-making play in financial markets, and how can investors develop habits to make more rational, data-driven investment choices? One of the common mistakes investors make is believing they need to act every time the market moves. Successful investing is about knowing when not to act. Markets reward consistency far more than they reward perfect timing. Investors who constantly chase the next opportunity often end up missing the benefits of staying invested over the long term. Sticking to a clear strategy makes decision-making easier. Technology supports this by giving investors access to timely information and a clearer view of their investments, but it can’t replace discipline. Ultimately, consistency remains one of the most valuable investment behaviours.

What are the most effective ways to identify and overcome cognitive biases, such as anchoring or confirmation bias, that can negatively impact investment decisions? Cognitive biases affect all investors, often without them even realising it. For example, anchoring can make it difficult to move past the price you originally paid for an investment, while confirmation bias encourages you to focus on information that supports your thinking instead of considering alternative perspectives. One of the most useful questions investors can ask themselves is: “If I didn’t already own this investment, would I buy it today?” This simple shift in thinking can help remove emotion from the decision. In light of Women’s Day, in your view, what’s the single biggest behavioural shift the financial services industry still needs to make to genuinely serve women’s wealth journeys? Would you say it’s a product problem, an advice problem, or a culture problem? While encouraging progress has been made, I believe the biggest shift still needs to happen at a broader societal level. For many years, investing has been positioned in a way that can feel exclusive or intimidating, when it should be something that people from all walks of life feel confident engaging with – that means creating experiences that are more accessible, relevant and empowering. Better financial education, clearer communication, and investment journeys that acknowledge different financial priorities can help build confidence. When people feel informed, included and supported, they’re far more likely to participate and build long-term wealth.

“Research shows that people tend to feel the impact of losses more intensely than gains of the same value”

www.moneymarketing.co.za // 27

BEHAVIOURAL FINANCE // AUGUST 2026

Investors are so often their own worst enemy

When behaviour is the dictator Behavioural finance has long shown that investment success depends far less on forecasting markets than on managing human behaviour. Research consistently demonstrates that investors often underperform the very funds they invest in because they buy and sell at the wrong times, allowing emotion rather than strategy to dictate their decisions. “The research is unequivocal,” said Crosby. “Investors give back about half of what they could make, not because of a government policy, but because of their own poor impulse control and their own decision making.” At the heart of these costly mistakes are four behavioural biases that influence almost every financial decision. • The first is ego. Investors frequently believe they are smarter, luckier or better informed than everyone else. They convince themselves that diversification, patience and disciplined investing apply to other people, but not to them. • The second is emotion. Fear and excitement can be useful in many aspects of life, but they become dangerous guides when making financial decisions. Market volatility often triggers emotional responses that encourage investors to abandon carefully constructed long-term plans in favour of short-term reactions. • A third behavioural trap is attention. Investors naturally focus on dramatic headlines – market crashes, geopolitical conflict or economic crises – simply because these events dominate the news cycle. Yet, as Crosby pointed out, people often confuse

28 // www.moneymarketing.co.za

what is loud with what is likely. Successful investing depends on understanding probabilities rather than reacting to headlines. • Finally comes conservatism – our natural tendency to cling to familiar investments, avoid change, and overestimate the risks associated with taking action. While caution has its place, excessive risk aversion can become just as damaging as reckless investing, particularly when it prevents clients from building sufficient long-term wealth. More than just a financial adviser For financial advisers, recognising these behavioural tendencies is becoming just as important as understanding asset allocation and portfolio construction. Advisers increasingly serve not simply as investment managers, but as behavioural coaches who help clients avoid making costly mistakes during periods of uncertainty. In fact, Crosby argued, this behavioural role is where advisers create some of their greatest value. Many investors assume they hire advisers to predict markets or identify tomorrow’s winning investment. The evidence suggests otherwise. Research shows that investors who work with a financial adviser typically outperform those who do not by between 2% and 3% a year – not because advisers possess a crystal ball, but because they help clients remain disciplined when emotions threaten to derail long-term plans. “The benefit isn’t that someone can forecast the future,” said Crosby. “The real value comes from helping people make better decisions.” Over time, those seemingly modest improvements compound into significantly greater wealth. More importantly, they often translate into benefits that extend well beyond investment returns. Crosby pointed to research showing that people who maintain long-term relationships with financial advisers tend to experience greater financial confidence, improved preparedness for emergencies, lower financial stress, and even higher levels of overall wellbeing. Doing less often delivers more Human beings are naturally wired to act, particularly when the stakes feel high. This is why during periods of market volatility, many feel compelled to buy, sell or reposition their portfolios simply to regain a sense of control. Yet, that instinct often destroys value. “You

should almost always do less than you think you should,” Crosby said. The numbers support this. Nobel Prizewinning economist William Sharpe found that investors would need to get approximately 82% of their buy-and-sell decisions correct simply to match the returns of a buy-and-hold strategy; a level of accuracy that very few ever achieve. Missing just a handful of the market’s strongest days can have a significant impact on longterm returns. If overtrading is one behavioural trap, trying to predict the future is another. “We should leave forecasting aside because forecasting is for weather people,” Crosby joked. He pointed to decades of research showing that even highly respected economists and market commentators consistently struggle to forecast financial markets with any meaningful accuracy. In fact, the more famous the forecaster, the less reliable their predictions often become. Too much info, too little time Rather than reacting to every alarming headline, Crosby encouraged investors to ask a far simpler question: Does this news change my long-term goals or my investment timeline? In most cases, the answer is no. The challenge is that today’s investors are bombarded with an unprecedented volume of information. Twentyfour-hour news channels, social media and market commentary create a constant stream of noise that can easily overwhelm rational decision-making.

“You should almost always do less than you think you should”

“Our brains are always looking for ways to do less,” Crosby explained. “One of the ways we do this is by listening to ‘experts’.” That is where advisers play an increasingly valuable role. Their job is not to predict the next market move, but to filter the noise, provide perspective, and keep clients anchored to a well-constructed financial plan. Ultimately, behavioural finance reminds us that successful investing is often remarkably uneventful. The greatest returns are earned not through constant action or perfect predictions, but through patience, discipline and the willingness to ignore distractions. In a world obsessed with doing more, the smartest investment decision is frequently to simply stay the course.

Image: Getty Images

arkets rise and fall. Interest rates change. Geopolitical tensions flare up with little warning. Investors spend countless hours worrying about factors they cannot control, often believing that successful investing is about predicting the next market move. According to psychologist and behavioural finance expert Dr Daniel Crosby, that focus is misplaced. Speaking at the recent Glacier Covered Investments Webinar 2026, he said: “The best predictors of whether or not someone reaches their financial goals are things that are firmly within their power.”

AUGUST 2026 // BEHAVIOURAL FINANCE

Why women’s investment outcomes outpace their confidence

esearch consistently shows an intriguing paradox. While only 15% of women describe themselves as very knowledgeable about investing, compared with 42% of men, women frequently achieve stronger long-term investment outcomes. They tend to trade less, remain invested for longer, and are less likely to make costly decisions during periods of market volatility. This Woman’s Month, MoneyMarketing asked Shalia Naidoo, Head of Behavioural Science and Innovation at Insurance and Asset Management, Standard Bank, to further unpack what advisers need to know about women and financial behaviours. “The difference lies in understanding the relationship between confidence and behaviour,” she says. “Lower self-rated confidence often correlates with a slower, more considered approach and less impulsivity in investment decisions,” she explains. “That allows compounding to do exactly what it is designed to do.” By contrast, overconfidence has long been recognised as one of behavioural finance’s most persistent biases. “Research has shown that men trade roughly 45% more than women, largely because of overconfidence,” says Naidoo. “Higher trading frequency tends to erode returns over time because market timing is genuinely difficult for anyone to get right consistently.” For advisers, she says, the lesson is not to encourage clients to become less confident, but to distinguish between confidence and competence. “Knowledge remains essential. Clients need to understand why their investment strategy works so they can take ownership of their financial decisions, rather than simply benefiting from inactivity.”

necessarily correct women’s risk appetite,” says Naidoo. “It should build products, advice and communication around risk awareness as a strength, while addressing the barriers that prevent women from investing in the first place.”

Rethinking risk Women are often described as more risk averse than men, but Naidoo believes that characterisation oversimplifies a far more complex behavioural picture. “I prefer to reframe risk aversion as risk awareness,” she says. “Caution isn’t necessarily a problem that needs fixing.” Behavioural biases such as loss aversion and regret aversion certainly play a role, but so do unfamiliarity with financial products and broader structural realities that shape women’s financial lives. Operating in unfamiliar territory often amplifies behavioural biases. Faced with uncertainty, people naturally become more cautious. Rather than trying to change women’s appetite for risk, advisers should focus on identifying the factors driving hesitation. “The industry shouldn’t

The invisible buckets we create Another behavioural bias advisers encounter regularly is the tendency to place money into different psychological ‘buckets’. While everyone does this to some degree, Naidoo says women often prioritise household and family-related buckets ahead of their own long-term wealth creation. “They protect those buckets first, sometimes at the expense of personal wealth-building.” Trying to eliminate mental accounting altogether would be a mistake. Instead, advisers should make these mental buckets visible. “Asking clients to name their financial buckets makes it easier to understand how

Why representation matters Behavioural science also highlights the importance of representation. Although women control an increasing share of household wealth, female financial advisers remain significantly underrepresented. Naidoo believes this influences how women perceive professional advice. “If advice doesn’t feel relevant to women’s life circumstances, clients are less likely to believe it represents or benefits them.” Research within Standard Bank has found higher retention rates among female clients who work with female advisers or wealth managers. That insight is helping shape new thinking around adviser-client matching. “Access to professional advice is important,” she says. “But access to advice that feels right is even more important.” Representation is about more than demographics; it’s about creating an environment where clients feel comfortable discussing issues that may affect women differently, including career breaks, caregiving responsibilities, divorce or widowhood. Those conversations naturally lend themselves to another behavioural insight: women often prioritise financial goals over investment performance. “They tend to focus more on achieving specific life goals, while men are often more focused on outperforming the market,” says Naidoo. For advisers, that reinforces the value of goals-based financial planning, where success is measured against meaningful personal outcomes rather than benchmark returns.

“Behavioural finance also explains why many women favour investments they feel they understand, particularly property”

they’re treating each one and whether those choices still align with their goals.” Familiar doesn’t always mean better Behavioural finance also explains why many women favour investments they feel they understand, particularly property. The attraction is psychological as much as financial. “Property represents something tangible, controllable and socially validated,” Naidoo explains. “It’s a physical asset rather than numbers on a screen.” Instead of challenging those preferences directly, advisers should build on them. “We need to use the mental models clients already rely on as scaffolding.” If a client values the predictability or visibility associated with property, advisers can demonstrate how diversified investment portfolios share similar characteristics, rather than presenting them as competing alternatives. Advice for life’s transitions Behavioural biases become particularly influential during major life transitions. Starting a first job, becoming a parent, experiencing divorce or widowhood, and entering retirement all fundamentally reshape how people perceive financial decisions. “Each transition changes the context so dramatically that it removes familiar reference points,” says Naidoo. A young professional may anchor decisions to their starting salary. Parenthood often shifts attention towards family finances, while divorce or widowhood can create decision paralysis driven by fear of making costly mistakes. Even retirement presents behavioural challenges. “Loss aversion often causes retirees to become overly conservative or spend less than their financial plan can comfortably support.” Rather than trying to change a client’s risk appetite directly, advisers should revisit financial plans whenever life circumstances change. A culture shift Ultimately, Naidoo believes the biggest challenge facing the financial services industry extends beyond products or advice processes. “It is fundamentally a culture problem,” she says. For many years, financial services were designed around men as the default client, with women added later rather than considered from the outset. That mindset is changing, but more work remains. “We need a deeper understanding of different preferences and better ways of engaging clients so we can build models that genuinely represent both women and men.”

www.moneymarketing.co.za // 29

INVESTING // AUGUST 2026

Mastering diversification: Building resilient investment portfolios

iversification has become one of the most widely referenced, and yet often misunderstood, principles in portfolio construction. For investors navigating By Ray Mhere volatile markets, CEO of Curate rising complexity, Investments and shifting global dynamics, the challenge is no longer simply accessing opportunities. It is about building portfolios that can endure, adapt, and deliver over time. However, diversification is not about owning more funds – it is about owning better.

Diversification as a strategic framework Effective diversification starts with a more structured approach to portfolio construction. This includes deliberate allocation across: • Asset classes – equities, bonds, cash, and property • Geographies – local and global exposure • Sectors and themes – ensuring relevance across economic cycles • Time horizons – balancing short-term stability with long-term growth. Each component plays a specific role. Together, they form a portfolio designed not just to generate returns, but to manage risk in a meaningful way. The objective is not to eliminate risk altogether. That is neither realistic nor desirable. Instead, the goal is to reduce the impact of any single risk factor and create a smoother, more consistent investment journey. The role of simplicity in resilient portfolios In a world of increasing investment options, complexity can often be mistaken for sophistication. However, resilient portfolios are rarely built on complexity alone. Balanced Funds, for example, provide a practical way to

30 // www.moneymarketing.co.za

achieve diversification without unnecessary complication. By combining multiple asset classes within a single structure, these portfolios offer investors broad exposure while maintaining clarity and discipline. For many investors, this approach not only reduces decision-making pressure but also supports more consistent outcomes over time. Discipline: the missing link Even the most well-constructed portfolio can fail without discipline. Market volatility often triggers emotional responses – from panic selling during downturns to overexposure during periods of growth. These behaviours can significantly erode long-term returns. Resilient investing requires a different mindset: • Regular review and rebalancing to maintain strategic alignment • Long-term commitment through market cycles • Avoidance of reactive decision-making driven by short-term noise. Consistency, rather than timing, remains one of the most powerful drivers of investment success. A long-term perspective on resilience Markets will always be unpredictable. Economic cycles will shift, geopolitical factors will evolve, and new risks will emerge. The question is not whether volatility will occur, it is whether

portfolios are designed to withstand it. Diversification, when applied with intent and discipline, remains one of the most effective tools available to investors. It provides the structure needed to navigate uncertainty while staying aligned with long-term objectives. Ultimately, mastering diversification is not about chasing performance. It is about building resilience and staying the course when it matters most. At Curate Investments, we have a range of funds suitable for different investor needs. We have created a range of funds that are managed by different investment managers so that they can be combined in a portfolio to provide the diversification that you need. To learn more about the art of investing, visit our website at www.curateinvestments.com Curate Investments (Pty) Ltd is an authorised financial services provider (FSP No. 53549). Registration number 2023/747232/07. The local and rand-denominated feeder funds are co-named portfolios administered by Momentum Collective Investments (RF) (Pty) Ltd, authorised in terms of the Collective Investment Schemes Control Act, 45 of 2002. Registration number 1987/004287/07. The dollar- and pounddenominated funds are sub-funds of the MGF SICAV, which is domiciled in Luxembourg and regulated by the Commission de Surveillance du Secteur Financier. Momentum Global Investment Management Limited (MGIM) is the Investment Manager, Promoter and Distributor for the MGF SICAV. This document is not an offer to purchase any specific investment fund and should not to be construed as financial advice from Curate. Investors are encouraged to obtain independent professional investment advice before making investment decisions. The terms and conditions, frequently asked questions, as well as the minimum disclosure document (MDD) and quarterly investor report (QIR) for each investment fund are all available on curateinvestments.com/sa.

Image: Getty Images

The misconception of diversification At its simplest, diversification is often described as “not putting all your eggs in one basket.” While this captures the essence, it oversimplifies the reality. True diversification is not achieved by accumulating a large number of investments. Instead, it requires intentional exposure to asset classes that behave differently under varying market conditions. When markets shift, as they inevitably do, resilience comes from how those asset classes interact, not how many are held. Too often, portfolios that appear diversified on paper are still heavily exposed to the same underlying risks. This creates a false sense of security – and leaves investors vulnerable when market conditions turn.

Singular personalisation Because no two investment journeys are the same. Personalised New Business simpliﬁes onboarding so you can focus on what matters most – client relationships.

Momentum Wealth Momentum Wealth is part of Momentum Investments and Momentum Group Limited. Momentum Wealth (Pty) Ltd is an authorised ﬁnancial services provider (registration number 1995/008800/07, FSP number 657). Momentum Metropolitan Life Limited is an authorised ﬁnancial services and credit provider (registration number 1904/002186/06, FSP number 6406).

MW-CL-3888-AZ-616

Speak Speak to to your your Momentum Momentum consultant consultant for for more more information. information.

INVESTING // AUGUST 2026

Separating value from value traps in frontier markets

eriods of heightened volatility and investor uncertainty present a particularly fertile hunting ground for patient, valuationdriven investors in frontier markets. Rory KutiskerOur experience Jacobson suggests that market Portfolio Manager of dislocations frequently the Allan Gray Frontier create attractive entry Markets Equity Fund points for long-term investors willing to tolerate uncertainty. For the quarter end June 2026, market performance across frontier countries was uneven, reflecting the differing domestic economic conditions, political developments, currency movements and shifts in investor sentiment. Rather than attempting to predict these outcomes, we focus on assessing individual businesses and the prices at which they are traded. When the market presents us with an opportunity to buy a good business at a large discount, we pounce. We believe that, over time, the price paid and company fundamentals are

far more important in determining investment returns than short-term fluctuations in economic expectations and investor sentiment. Indonesia provides an apt example. It has been one of the weakest performing frontier and emerging markets so far this year, with the Jakarta Composite Index down 39% in US dollars. Foreign investors have been net sellers of Indonesian equities amid concerns over fiscal policy, governance issues, a weakening rupiah and questions around policy predictability under President Prabowo Subianto’s administration. Market selling appears widespread and indiscriminate, with little distinction being made between companies with differing fundamentals. As such, we have increased our focus on the country. Deeper research suggests that many of these counters are not as attractive as we thought at first glance and the price declines may indeed be justified. You rarely find diamonds without digging, however, and despite rejecting some of the ideas, we found one compelling opportunity: Indofood Sukses Makmur (INDF) is an integrated consumer-facing holding company, with its primary asset being the listed subsidiary, Indofood CBP (ICBP). ICBP is the leading instant

Why diversification still matters

or decades, diversification has been regarded as one of investing’s most powerful principles. Yet, in an era dominated by concentrated technology stocks, artificial intelligence and investors searching for the next big winner, some have begun to question whether the old rules still apply. At the recent Glacier Invest Summit 2026, Jaco-Chris Koorts, Portfolio Manager at Glacier Invest, said that the answer remains an emphatic 'yes'. While diversification may involve owning more investments, it’s also about constructing portfolios that can weather different market conditions while improving the balance between risk and return. “The concept isn’t new,” says Koorts. “Harry Markowitz showed mathematically that by adding diversification to a portfolio, you can reduce risk without reducing expected returns. In other words, diversification makes a portfolio more efficient.” Markowitz’s Modern Portfolio Theory, developed in the 1950s, remains the foundation of portfolio construction today. It recognises that while investors cannot eliminate every form of risk, they can remove many unnecessary risks by combining assets that behave differently over time. Koorts explains that every portfolio is exposed to two broad categories of risk. The first is systematic risk – factors such as market declines, inflation shocks or geopolitical events that affect virtually every investor. These risks cannot be diversified away. The second is company-specific, or idiosyncratic, risk. This includes poor management decisions, weak earnings, excessive debt or regulatory changes affecting individual businesses. Unlike broader market risk, these factors can be significantly reduced through diversification. “The more effectively you diversify, the more company-specific risk you remove,” he says.

32 // www.moneymarketing.co.za

“Ultimately, you’re left with the market risks that every investor has to manage.” More than simply owning more funds Diversification, however, is often misunderstood. Simply adding more shares or more unit trusts does not automatically produce a better portfolio. Koorts points to comments frequently attributed to legendary investor Warren Buffett, who has famously described diversification as “protection against ignorance”. While these remarks are often interpreted as an argument against diversification, he believes they are frequently taken out of context. “Buffett isn’t saying diversification doesn’t work,” he explains. “What he’s saying is that adding investments without understanding how they behave won’t magically improve returns or reduce risk.” Even Berkshire Hathaway, Buffett’s own investment vehicle, appears more diversified than many investors realise once its large cash holdings and wholly owned businesses are considered. For advisers, this highlights an important distinction between diversification and duplication. Holding multiple funds with similar investment styles may provide little additional protection if they all respond similarly during market downturns. Instead, effective diversification requires understanding how different managers invest and how their strategies perform under varying market conditions. Building portfolios like relay teams Koorts compares successful portfolio construction to an Olympic relay team. “No team expects every athlete to perform perfectly every day,” he says. “If one runner has an off day, the others can help make

noodle business in the country, with more than 70% share of the domestic market and a considerable presence in offshore markets. Beyond an 80.5% stake in ICBP, INDF owns wheat flour, palm oil and distribution businesses that vertically integrate with and supply ICBP. On our estimates, INDF trades on just over five times earnings, which we believe is a good price to pay for a dominant, cash-generative, consumer-facing business. Outside of Indonesia, we are seeing opportunity in Mexico, Poland and Türkiye. Conversely, Seplat Energy, a Nigerian energy provider, has delivered strong share price performance year to date on the back of elevated oil prices, and we recently utilised this opportunity to trim the position. The portfolio continues to trade at what we believe is a substantial discount to our estimate of underlying intrinsic value. While we cannot predict when this discount will close, history suggests that patient investors are ultimately rewarded when fundamentals assert themselves. We remain committed to investing where prospective long-term returns justify the risks involved, irrespective of prevailing market sentiment.

up the difference.” The same principle applies to investments. Different asset classes, fund managers and investment styles outperform at different stages of the market cycle. Rather than relying on a single manager or strategy, well-diversified portfolios combine complementary approaches that work together over time. This philosophy underpins Glacier Invest’s manager research process, which extends well beyond traditional performance screening. Quantitative analysis is combined with detailed qualitative research to understand each manager’s investment philosophy, decision-making process and style. “We’re far more comfortable when a fund underperforms for the right reasons than outperforms for the wrong ones,” says Koorts. “Understanding how a manager generates returns is just as important as the returns themselves.” Diversification remains a competitive advantage Portfolio construction has become increasingly complex as the number of available investment funds continues to grow. South African investors now have access to thousands of unit trusts, making manager selection more challenging than ever. For advisers, diversification therefore extends beyond asset allocation. It involves selecting managers with complementary styles, balancing active and passive strategies where appropriate, controlling costs, and making tactical adjustments as market conditions evolve. Ultimately, Koorts argues, diversification should not be viewed as a defensive exercise, but as a disciplined framework for delivering more consistent long-term outcomes. “The objective isn’t simply to spread investments around,” he says. “It’s to build portfolios that give investors the highest probability of achieving their goals across different market environments. That’s what true diversification is designed to do.”

1908

Time is the greatest gift of all.

We all want more time to spend on the things that are important to us. Whatever those things may be, the good news is that if you invest early, time gives you money. And then, money gives you more time to spend on the things you love. Speak to us to make the most of your time. Call Allan Gray on 0860 000 654, or your financial adviser, or visit www.allangray.co.za. Allan Gray is an authorised FSP.

INDEX INVESTING // AUGUST 2026

Why more South African advisers are embracing index investing Editor MoneyMarketing

ndex investing has grown significantly in popularity over the past decade, and in South Africa, the trend shows no signs of slowing. But what’s really behind the surge, and what does it mean for financial advisers and their clients? According to Kingsley Willams, Chief Investment Officer at Satrix, cost efficiency remains the single most powerful driver. “Index funds are significantly cheaper than active funds, and over time, investors have come to appreciate the compounding benefit of lower fees, which directly improves net returns,” he says. It’s a straightforward principle but one that, applied consistently over years, can make a meaningful difference to long-term portfolio outcomes. Beyond cost, Willams points to performance transparency and consistency as equally important factors. “Index funds follow clear, rules-based benchmarks, making them easy to understand and highly transparent,” he explains. At the same time, the difficulty of identifying active managers that consistently outperform the market over the long term has shifted investor behaviour. “More investors are asking themselves why they would pay higher fees to chase returns that are hard to deliver consistently,” Willams adds. The result is a growing preference to simply own the market. The third structural driver is accessibility. “Index funds allow investors to access entire markets or asset classes in a single investment, including global equities,” Willams notes. The rise of ETFs and digital platforms has made this kind of exposure available to a wider audience – from high-net-worth individuals to first-time retail investors. Index investing’s role in a volatile portfolio In a market environment characterised by volatility and uncertainty, index investing takes on added significance. Willams is clear about the core benefit, which is diversification. “By tracking broad indices, these funds give investors exposure to hundreds or even thousands of securities across different sectors,

“In a market environment characterised by volatility and uncertainty, index investing takes on added significance” 34 // www.moneymarketing.co.za

geographies and asset classes,” he says. “This means that when markets are volatile, the impact of any single stock, sector, or region falling sharply is significantly diluted.” The consistency that index investing brings is equally valuable in uncertain conditions. “In volatile markets, it is very difficult to consistently identify which sectors or managers will outperform,” Willams explains. “By holding the market through tracking an index, investors avoid the risk of being positioned incorrectly and instead benefit from the collective resilience of the broader market over time.” For advisers constructing client portfolios, Willams recommends a building-block approach – one that starts with strategic asset allocation rather than individual product selection. “A well-diversified client portfolio should begin with deciding how much to allocate to equities, bonds and global exposure,” he says. “Index funds can serve as the core building block in that structure. Keeping costs low helps preserve returns and reduces the drag on performance over time – which becomes even more important in uncertain markets where returns may be more muted.” Navigating an expanding product range As the index investing landscape expands – with factor-based, and more targeted ETFs now widely available – advisers face a new challenge: determining which solutions are appropriate for which clients. Willams urges a return to fundamentals. “Advisers need to focus less on the product itself and more on how it fits into the overall portfolio and client objectives,” he says. “Understanding the client’s goals, risk tolerance and investment horizon first is the most important step.” From there, product selection becomes more purposeful. “Broad, vanilla index funds are typically best suited as core holdings because they provide diversified, low-cost exposure to key asset classes,” Willams explains. “More specialised solutions, like factor ETFs, should be used selectively and with a clear intention. Factor ETFs can be useful where there is a defined objective, such as tilting toward value or quality. Target ETFs, on the other hand, are more appropriate for satellite exposures rather than core allocations.” The key question advisers should ask, Willams suggests, is not whether a product is inherently good, but what job it is doing in the portfolio. “Whether that’s diversification, return enhancement, or risk management, the answer should be clear,” he says. “As products become more sophisticated, advisers also need to ensure clients understand what

they own. Target or factor strategies may behave quite differently to the broad market environments, and that complexity needs to be communicated clearly.” Busting the myths Despite its growing acceptance, index investing still carries misconceptions. The most persistent, Willams says, is the idea that it is a ‘lazy’ or inferior approach. “That characterisation misses the point entirely,” he argues. “Index investing is a very disciplined and intentional strategy. The real value is added through asset allocation, which remains an active decision.” There is also a perception that index investing is limited or undiversified. “Some investors still think index funds only track something like the Top 40,” Willams notes. “In practice, index investing offers a wide range of different exposures and investment strategies – across sectors, geographies, and asset classes – which provides an abundance of choice to tailor a unique client solution.” For advisers, the opportunity lies in clear, balanced education. “Index funds will capture market returns, so clients will participate in both market ups and downs,” Willams says. “Advisers should set that expectation upfront so clients stay invested during volatility rather than reacting emotionally.” The trade-offs are real and should be acknowledged openly. “Index funds won’t outperform in every period and may reflect market concentration,” Willams cautions. “But over time, their discipline, transparency, and cost-efficiency support more consistent outcomes.” Ultimately, Willams sums it up plainly: “Index investing isn’t a silver bullet; but when used correctly, it is a powerful tool within a well-constructed, diversified portfolio.” For advisers willing to build the knowledge and communicate clearly, that power is now within reach of an ever-wider client base.

Image: Getty Images

By Sandy Welch

AUGUST 2026 // COMPLIANCE

Masthead Regional Manager, KZN, and

Ryno Volschenk

Masthead Regional Manager, JHB

lternative investment managers operate across a wide range of markets – from private equity, venture capital and private debt to structured products and other specialised investment vehicles. Although regulation is nothing new for the sector, the Conduct of Financial Institutions (COFI) Bill introduces a different approach to regulating the financial services sector. Rather than focusing on the type of business an organisation is, COFI adopts an activity-based approach based on the financial activities an entity undertakes. As a result, some alternative investment managers that have not previously required an FSCA licence may now need one. Others may need to review whether their existing licence adequately reflects the activities they perform. Firms should therefore begin assessing how their activities may be affected, rather than assuming COFI only applies to more traditional financial institutions. How COFI will apply to alternative investment managers The implications of COFI will depend on the financial activities a business undertakes. While some alternative investment managers already hold financial services licences, others have historically operated outside the licensing framework because of the nature of their activities or the way their businesses are structured. Businesses that undertake activities listed in COFI’s proposed licensing schedule are expected to require authorisation for those activities. As a result, some firms that have not previously viewed themselves as falling squarely within the financial services regulatory framework may find that COFI has a greater impact on their business than anticipated.

SUBSCRIBE TO

How will firms know if COFI applies to them? The best starting point is to identify the financial activities your business undertakes. These may include providing financial advice, distributing financial products, managing investments or carrying out other regulated financial activities identified in COFI’s proposed licensing schedule. Mapping those activities against the proposed licensing schedule is one of the most practical steps firms can take now. It provides an early indication of where COFI may apply, and helps identify areas that may require further attention as the legislation progresses. What should firms do to prepare? Although COFI has not yet been enacted, businesses can begin preparing now by understanding where they may be affected and developing a practical roadmap for readiness. This doesn’t mean implementing every proposed requirement immediately but taking measured steps to prepare for the proposed framework. Mapping business activities is a good starting point, but it is only one part of COFI readiness. Businesses should also review governance arrangements and assess whether existing policies, processes and controls support the outcomes COFI is designed to achieve. They should also consider whether areas such as conflict-of-interest management, product governance, customer disclosures and complaints management align with the proposed framework.

“Firms that begin assessing their readiness now will be better positioned to adapt”

COFI places greater emphasis on evidence. Rather than simply having policies in place, firms are expected to demonstrate how they deliver and monitor fair customer outcomes, manage risks and implement effective governance. Another important consideration is regulatory reporting. Firms should assess whether they currently collect the management information needed to support future reporting through the Financial Sector Conduct Authority’s regulatory reporting platform – the Omni-Risk Return (Omni-RR). For some businesses, this may require enhancements to existing systems and data collection processes to ensure they can capture and report the required information. Businesses should also be aware that OmniRR reporting is expected to begin before COFI is fully enacted. Taking these steps now allows firms to identify potential gaps early and address them progressively, rather than under the pressure of implementation deadlines. Looking ahead COFI represents a significant shift in the way market conduct will be regulated in South Africa. For alternative investment managers, the proposed activity-based approach means that understanding how the framework may apply to their business is no longer something that should be left until the final Act is published. While the implementation timeline is still unfolding, firms that begin assessing their readiness now will be better positioned to adapt when the new framework comes into effect. Preparation is not about anticipating every detail of the final legislation. It is about understanding the direction of travel, identifying potential gaps and taking measured steps so that when COFI is implemented, the business is ready.

First for the professional personal financial adviser

GET A 12-MONTH SA SUBSCRIPTION FOR ONLY R494! (SA postage only, including VAT)

Contact Rae Morrison Email: rae.morrison@media24.com Tel: +27 (0)72 297 3443

31 JULY 2026 R69.95 INCL VAT

www.moneymarketing.co.za

WHAT’S INSIDE YOUR JULY ISSUE: ESG INVESTING Advisers who don’t have a clear ESG philosophy risk losing relevance with a generation of clients. We explore where the sustainable investing debate stands. Pg9-11

EDITORIAL EDITOR: Sandy Welch sandy.welch@media24.com ART DIRECTOR: Julia van Schalkwyk SUB EDITOR: Anita van der Merwe DIGITAL CONTENT CO-ORDINATOR: Mpolokeng Lechoba ADVERTISING KEY ACCOUNT MANAGER: Mildred Manthey Cell: +27 (0)72 832 5104 mildred.manthey@media24.com

DISTRIBUTION & SUBSCRIPTION Rae Morrison Email: Rae.Morrison@media24.com

MEDIA24 MEDIA CEO: Minette Ferreira CFO: Luxolo Dywili

PUBLISHING TEAM GENERAL MANAGER: Dev Naidoo HEAD OF CONTENT & DIGITAL STRATEGY: Varushka Padayachi PRODUCTION MANAGER: Angela Silver GROUP ART DIRECTOR: David Kyslinger

MEDIA24 CORPORATE CEO MEDIA24: Raj Lalbahadur CFO MEDIA24: Nelmarie Beyers

MoneyMarketing is printed and bound by Novus Print.

FAMILY OFFICES Family offices have grown into a significant force in wealth management — and for many advisers, they represent both competition and opportunity.

Published by Media24 B2B Johannesburg Office: Building 13, The Woodlands Office Park, 20 Woodlands Drive, Woodmead, Sandton PO Box 784698, Sandton 2146 Tel: +27 11 867 6111

Pg12-14

LEAVING A LEGACY Wealth transfer is one of the most consequential conversations an adviser can have with a client. Those who engage their clients here build the most enduring relationships of their careers. Pg15-18

OFFSHORE INVESTING For SA investors, offshore investing requires a disciplined, long-term strategy that consistently outperforms reactive, opportunistic investing. Pg22-27

COMMUNICATE & CONNECT

Unless previously agreed in writing, MoneyMarketing owns all rights to all contributions, whether image or text. SOURCES: Shutterstock, Getty, supplied images, editorial staff. This publication may contain content generated or assisted by artificial intelligence (AI). All efforts have been made to ensure accuracy and editorial integrity. While precautions have been taken to ensure the accuracy of its contents and information given to readers, neither the editor, publisher, or its agents can accept responsibility for damages or injury which may arise therefrom. All rights reserved. © MoneyMarketing. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, photocopying, electronic, mechanical or otherwise without the prior written permission of the copyright owners. © MoneyMarketing is not a financial adviser. The magazine accepts no responsibility for any decision made by any reader on the basis of information of whatever kind published in the magazine.

@MoneyMarketingSA

Offshore complexity demands concise investing advice By Sandy Welch

Editor MoneyMarketing

s rand fluctuations, concentrated domestic exposure and the breadth of global opportunity have pushed international diversification up the advice agenda, offshore investing is now central to any South African portfolio. While the strategy behind this rationale may be familiar, the practical decisions around allocation, structure, tax, estate planning and platform choice remain complex. That complexity is precisely where financial advisers have a critical role to play. Why choose offshore? Beyond providing a buffer against South Africa’s political and economic uncertainty, offshore exposure offers investors access to a broader universe of opportunities, helping to preserve and grow wealth over the long term. Global markets open the door to leading sectors such as technology, healthcare and renewable energy, as well as many of the world’s most innovative and high-growth companies that are simply not available on the local market. By diversifying across geographies, currencies and industries, investors can reduce concentration risk while positioning themselves to benefit from global economic trends and opportunities. But, as Robert Rhodes, Managing Director of Momentum Wealth International, explains, offshore investing should never be reduced to a simple percentage allocation or a generic recommendation. “It needs a very clear strategy that is closely aligned with the investor’s goals and objectives,” he says.

A dedicated international platform Momentum Wealth International was launched in 1999, originally as an internationalised version of Momentum’s local platform. First set up in London, it was largely to support international distribution through private wealth channels in jurisdictions such as the Bahamas, Monaco and Jersey. Over time, however, the business identified a growing need among South African investors for access to international products. As the business evolved, the platform moved to Guernsey. “We started with a discretionary investment product, but we extended our product set to include discretionary investment and endowmenttype products for South African investors, as well as products targeted to investors outside South Africa, which we distribute through adviser firms in Asia and the Middle East,” Rhodes explains. “Momentum Wealth International also operates a fund structure in Guernsey through which we establish Momentumbranded and adviser or third-party investment manager-branded funds, which are obviously available on the Momentum Wealth International platforms, but also through other platforms in South Africa.” Guernsey is an attractive jurisdiction for offshore investing because, as a British crown dependency, it allows free flow of capital, with no restrictions on money movement, making exits and money transfers simple. It also offers a stable, well-regulated financial environment, complemented by tax efficiency and political and economic stability. Continued on next page

Singular personalisation Because no two investment journeys are the same. Personalised New Business simplifies onboarding so you can focus on what matters most – client relationships. Speak to your Momentum consultant for more information. Momentum Wealth Momentum Wealth is part of Momentum Investments and Momentum Group Limited. Momentum Wealth (Pty) Ltd is an authorised financial services provider (registration number 1995/008800/07, FSP number 657). Momentum Metropolitan Life Limited is an authorised financial services and credit provider (registration number 1904/002186/06, FSP number 6406).

MW-CL-3888-AZ-616

By Ignatius Jacobs

COFI and Alternative Investment Managers: What’s changing?

MoneyMarketing August 2026